@VAMortgageGuy wrote: @EaglesFan2006 wrote: I'm considering this option to pay off personal loans as the stress of these bills is eating me alive and it's getting harder to keep up with. I've got CC debt under control, but the PL lines are killing me. The balances are about 56k, with monthly payments of about 3200 over the next 12-15 months. I spoke to a LO at my current mortgage company and while they're working on details, he estimated that I could potentially cash out at 60k and my mortgage payment would go up roughly $800. That stinks but far better than what I have now. It would pay off those debts with a couple grand extra. I haven't gotten any interest rate details but it's obviously going to be much higher than my current mortgage rate. Still, it's better than the situation I'm in now. many thoughts on if this is a good idea? From my budget perspective it seems that way. I'm currently FHA but with this I feel like I could refinance within a year to lower the mortgage payment (depending on rates obviously) or even pay more monthly to pay it off faster. Are there any downsides? As these are personal loans and not credit cards, I'm not worried about "re-adding" the debt as I couldn't use them again even if I wanted to. It seems like a good situation overall, but I also know nothing is ever as good as it seems. Any insight is appreciated. Also, is the loan/closing process similar to a first mortgage or closer to a regular refi, which didn't require much? How long does it usually take? What is your current rate and what rate are you being offered for the refi? Am I reading this right, the PLs will be paid off in the next 12-15 months? If they are going to be paid off in the next 12-15 months, I wouldn't do anything. You're talking about spending 4-8K in equity to refinance, as well as taking on a higher rate for you largest debt in order to pay off some debts that will be paid off in 12-15 months. IMHO, I would cut out as much of your budget as possible and knock down the PLs as quick as possible. Let me ask you this. Why did you take the PLs to begin with? Thanks for the feedback. I know it's not ideal but I'm concerned about being unable to keep up with those payments. As it is I've already utilized things like skip pays, etc, and the stress has gotten to be a lot. It's literally all I think about and it's impacting my health. I also have no emergency funds and can't save at all with every thing going to bills. There were a lot of reasons I got into this mess but ultimately I take responsibility. I've managed to stop using credit cards over the last year so I trust i can move forward and be better. I know in 15 months 3 out of 4 of those would be gone, the other one is a little longer. But I'd be eliminating 3200 per month for a mortgage that would go up about 700 per month. I figured I'd could pay several hundred more on the mortgage per month to rebuild some of that equity. I can also save and in a couple of years either sell or refinance into something better. again not ideal but I feel like it might be the best option. But it's not ideal. I already started the app and am waiting for an appraisal. It might be a moot point if that doesn't come through, at which point I lose 445 for it. I can live with that I guess. I know giving up equity isn't a great thing, but neither is all the stress. Not looking for any sympathy or empathy, just being honest and I know it's my own fault, even the stuff that's out of control. I suppose I think this is better than potentially missing payments on what I have now other than what you mentioned, is there any long term risk here? If I can pay more (but my estimates a total of 2 extra mortgage payments per year) wouldn't I be in a better spot a couple of years from now?
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