What is the best way to consolidate my debt? I have a mortgage and want to refinance,add my debt to new loan?

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I have a $ 530,000 all-interest mortgage loan. I am interested in refinancing soon, (if it is a good time to do so?) Should I refinance and add my $ 15,000 of personal debt to my new loan? Or should I get a personal loan for $ 15,000 from my bank?

I was watching a tv show on HGTV about people buying their first houses, and one of the families couldn’t get a decent mortgage amount because they had credit card debt. Is that just because the credit card debt affected their credit in general? If someone has student loan debt can they still get a mortgage as long as they are meeting at least the minimum payments?
Pretend you are talking to a 12 year old. I have no financial experience yet. 😛

  1. Reply
    P J
    February 4, 2011 at 6:05 am

    It might be hard refi-ing a jumbo loan these days.

    Getting additional cash out might be impossible and a very bad idea to begin with.

  2. Reply
    February 4, 2011 at 6:20 am

    Refinance, if you scenario fits

    personal loan= no bueno, looks bad on credit like BK

  3. Reply
    February 4, 2011 at 7:14 am

    Depends on the value of your house and the interest rate you are paying currently.

    Rolling your debt into the mortgage is not a bad plan, IF, you are not going to run the debt up again.

  4. Reply
    steve g
    February 4, 2011 at 7:56 am

    Depending on how long you have had the loan. Most loan companies won’t allow a refinance for at least a year or two. As an all interest loan, do you have some equity to use?

    If you can overcome those problems, then it’s better to do it in a refi, or maybe a second. In both cases you would be able to claim the interest as tax deductible.

  5. Reply
    February 4, 2011 at 8:23 am

    It depends on alot more than that.

  6. Reply
    February 4, 2011 at 9:08 am

    yes they can if they can meet the debt ratios with the new home in the mix. Done all the time
    I am a mortgage banker in TN & KY

  7. Reply
    February 4, 2011 at 9:49 am

    The total amount of debt you have will affect your ability to get a mortgage. They don’t care where the debt is from, just that it is there. It will be looked at as how much debt you have in proportion to how much income you make.

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