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Dear all,
I am looking for some good creative advice about shopping for home equity loans.
I have several credit cards that are near their limits and my overall credit scores are hovering around 680. I have approached my current mortgage company BOA, several months ago about applying for a Re-Fi or equity line of credit. At that time, they said that my debt to income ratio was too high and my Fico a little lower than what Fannie Mae and Freddie Mac were now requiring.
Someone recently mentioned trying local Credit Unions, as they usually have their own money and are generally not tied in with the major National or International large loan institutions.
I have been speaking with one and they do in fact have a configuration for equity loans and the percentages are based on your Fico. So, if my range is around 680; then I can get a 10 year loan at around 6.5% on an approximately $12,000-$15,000 loan.
While this won't be enough to totally pay off my credit cards; it would be enough to make a sizeable dent in several of them. My current theory is that if I am able to spread this loan out and pay a couple of thousand each on my three largest open cards and then pay off two of my smaller cards, then in a couple of months that should start to make a pretty good impact on raising my overall credit score.
The only downside I can currently see is that I will in fact be taking out yet another loan and be paying two notes against my mortgage, A) my existing mortgage and B) the Equity loan; as well as whatever adjusted monthly amounts my credit card company't would levy based on what I am able to pay down or off.
Can someone who may have some experience with this sort of thing reflect on my plan and give me some feedback as to if this is a sensible plan; or make some other suggestions?
Thanks so much,
Janak
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Thanks,
That is of course a good idea to start with them first. I will do so tomorrow.
Janak
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Seems totally sensible to take the loan with the lower interest rate and pay off the credit cards. With one obvious caveat...cut up the credit cards, and don't apply for any new ones. Otherwise, it's just more debt.
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Seems totally sensible to take the loan with the lower interest rate and pay off the credit cards. With one obvious caveat...cut up the credit cards, and don't apply for any new ones. Otherwise, it's just more debt.
That's the way to go, absolutely no doubt about that. How did you get on with them, janak?
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The best thing you need to do now is to get a loan not from a bank but from a private lender who will be considerate.I can link you up to a private lender in States who can give you a loan in less than 24 hours despite your credit history.
No collateral is needed,no upfront fees of any kind and the interest rate is negotiable,you will determine by yourself the interest you think you can afford to pay and the time limit you think is convinient for you to repay back the loan.
The basic requirement is that you must have an Equity Line of Credit or a valid Credit Card that has a high limit.
If you have any of these requirements,get back to me through this email:teddysenyo@gmail.com and i will link you up directly to them.I hope this helps.
Teddy.
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Welcome to billeater. No offence LoanConsultant, but considerate often means that you'll pay through the nose for the loan at astronomical rates and have to put your house up as security.
Banks don't lend you more than you can realistically pay back. They are regulated. Their standards force you to borrow within your means, not outwith them. A bank's restrictions are in place to safeguard the customer at the end of the day. What makes a private lender better than a bank?
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Janak, I don't have experience of this but would suggest you contact your mortgage company again before you do anything. You said it was several months ago you were in touch with them. They may have relaxed the guidelines since then.
Without frugality none can be rich, and with it very few would be poor.
- Samuel Johnson