Consolidate your credit card debt into my mortgage?

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I look forward to a home in Columbus, Ohio now. I was a loan $ 50,000 (not looking for a house fancy, just a little something that meets my needs) approved, but I have a little more worth $ 7,000 Debt credit card. Is it possible to buy a house, for example $ 40,000 and then increase my mortgage by $ 47,000 to my credit card to borrow? Is it possible to do this? Thank you in advance !!!!!! !!!!! I am also the first home buyer, I have no debt. I only have credit card debt.

  1. Reply
    February 8, 2011 at 5:33 am

    No you won’t be able to because a mortgage is a secured loan. You won’t find a lender that will lend more than 100% of the home value. If you don’t have 20% down you’ll pay pmi as well. Pay off your credit card debt, save some money up for down payment and get something where the payments are no more than 30% of your take home pay.

  2. Reply
    February 8, 2011 at 6:08 am

    Even if you could, you should not. Because if you do, you are converting an unsecured debt, credit cards, into a secured debt. That means that if you cannot pay it, they can foreclose on your home. As unsecured debt, they is a limit as to what they can do.

    As the other person said, pay down your credit card debt separately.

  3. Reply
    February 8, 2011 at 6:28 am

    What you are talking about is more of an equity loan than a purchase money loan. You can’t roll in your credit card debt when purchasing the house.

    Other things you might want to consider…

    Can you afford the house payment (including taxes, insurance, and monthly home owner costs like repairs) AND the $ 7,000 debt.

    Is your debt to income ratio going to be high, thus causing you to be a borrower that is harder to get a loan for.

    Are the debts reducing your credit score?

    I highly recommend reading Dave Ramsey books. He is a great motivator for how to get out of debt!!!!

    Good luck!

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