Debt Consolidation Question?!

[donkort]

How much equity do you have now?  I was just thinking of that.....

Id be happy if you succeeded in getting the refi.  $77 a month for 30 years, versus $810 a month over 5 years is quite a contrast, from my standpoint.

Plus.....you will gain the equity, and be eligible for more credit products because you have to spend less per month.

Plus.....you won't be broke after payday any more.

[Anonymous]

Bought house for 260k

Balance is 228k right now

Owned house five years now.

Worth $310k right now

Current payment $1513

4.5%

New payment $1590

4.5%

With all closing costs rolled in new balance $260,000

[Jnbmom]

It is usually not recommended to turn unsecured debt into secured debt.

is your refinance going to extend the loan? 

Yes while on paper it looks better payment wise but that 28K over the life of the loan will cost way more in the end .

[Kforce]

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@Anonymous wrote:

Which of these three options should I pick for handling mby debts:

1.)  I pay $911 a month right now - it's every penny we have.  Calculators online say I should be debt free in 3 YEARS if nothing else is spend.  Which is hard in three years.  We buy gas and groceries Friday on pay day and are broke rest of week - literally every penny.

2.)  I could pay $811 a month on all the individual debts below - I would be debt free in 7 YEARS.

3.)  Debt consolidatin personal loan (SoFi or Upstart or similar) - rate is around 10.99%.  Payoff debts in 5 years.  No origination fees.  But just have one payment and it is lower - around $750 so gives us some money to save / spend when needed instead of turning to cards because there is no spare cash.

4.)  Refinance house and take out extra $28000.  My rates would stay at 4.5% -- my payment would go from $1513 to $1590 a month.  But I am paying on that for 30 years (or however long I live there).

Here is what we owe:

Personal loan - $14,624 @ 9.75%

Medical loan - $6852 @ 6.99%

Chase Credit Card - $2980 @ 0%    (forever rate since we will keep balance transfering)

Citi Card- $3400 @ 0%    (forever rate since we will keep balance transfering)

Doctor bills - $1052 @ 0% 

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TOTAL - $28,908

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#1:   Not likely to make it work / NO

#2:   If #3 is 5 years and you are paying more with 0 interest this should be closer to 4.5 years

        This is the best option if you want to use and take advantage of zero offers

         and don't mind things being a little work (Can save up to ~ $3000 over #3)

        Agree with K on this is the best if you want to save money

#3:   $28000 @ 10.99% for 5 years   = 609/month and cost  $8,500

          Not the money saver but clean and easy.

#4:   $28000 @   4.50%  for 30 years = $23000 interest loss. / NO

[Anonymous]

Keep in mind with the refinance we'd likely only live in house for maybe ten years then move so wouldn't pay on that debt the whole thirty years. 

Another option is keep paying as much as I can towards these debts. Then whenever we sell the house take some of the equity/profit we get out to pay them. Which stinks as where I live you need a lot of money to get into a house. 

If YOU were me what would your plan of attack be. What method? What order?  What amount (min due is $811 a month - have $911 in budget)?

[Kforce]

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@Anonymous wrote:

Keep in mind with the refinance we'd likely only live in house for maybe ten years then move so wouldn't pay on that debt the whole thirty years.  If YOU were me what would your plan of attack be. What method? What order?  What amount (min due is $811 a month - have $911 in budget)?

Bought house for 260k

Balance is 228k right now

Owned house five years now.

Worth $310k right now

Current payment $1513 @ 4.5%

New payment $1590  @ 4.5%

With all closing costs rolled in new balance $260,000

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Your numbers don't add up !

260000 @ 4.5 with 1,513 payments = 22 year loan, this means that if you have a 30 year loan additional expenses are in your payments.

Tax's, Insurance, homeowner fees, etc.

Without real loan, interest and payment info, everyone is just guessing at what your interest loss is and would be.

Additionally with the new refinance,  we don't know the numbers.

Start 260000, current 228000 = 32,000

What is the cash out and fee portion 28000 and 4000 or 30000 and 2000 or ??

If your loan is again 260000 @ 4.5% for 30, the payment would be the same. 

Because it is 77 more something changed. ?

We need good info to recommend good options.

The only thing that I know with any accuracy is #3

If you give good info for your mortgage and refi, I can give better numbers and maybe answer your

real bottom line question " If YOU were me what would your plan of attack be".

[Jnbmom]

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@Anonymous wrote:

Keep in mind with the refinance we'd likely only live in house for maybe ten years then move so wouldn't pay on that debt the whole thirty years. 

Another option is keep paying as much as I can towards these debts. Then whenever we sell the house take some of the equity/profit we get out to pay them. Which stinks as where I live you need a lot of money to get into a house. 

If YOU were me what would your plan of attack be. What method? What order?  What amount (min due is $811 a month - have $911 in budget)?

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Have you already applied for the refinance and locked that rate or is this something they are saying is  what the rate may be? I don't think you mentioned your scores? Just curious if this in fact the rate you would get?

[Anonymous]

Is there a way to attach or insert the PDF I got from my mortgage lender showing all this info?