|
|
|
|
Pug
The Movie Geek
|
|
|
Joined: 21 Aug 2003
Posts: 8924
|
| Back to top
|
|
 Posted: 10/25/04 - 13:54 Post subject: debt reduction, getting a loan, help
So, after paying for our wedding on credit cards Mrs Pug and I are looking to pay down our debt in the best way possible. Right now our bills are spread out over 4 different cards with a total of around $12,000 (or so).
We're looking into getting a loan to cover this balance so we can pay off our credit cards and have one single payment (at a lower interest rate).
What do I need to know, and what is a good interest rate to be looking at for a loan of this sort?
Our credit scores are 667 and 674.
|
|
|
|
|
Pebbles
Member
|
|
|
Joined: 21 May 2002
Posts: 2947
Location: Bedrock
|
| Back to top
|
|
Posted: 10/25/04 - 14:21 Post subject:
try here
I know the online applications are a pain but it could give you an idea of what type of rate you could have approved...then go to your local bank and see if they will give you the same rate or better.
|
|
|
|
|
Pug
The Movie Geek
|
|
|
Joined: 21 Aug 2003
Posts: 8924
|
| Back to top
|
|
Posted: 10/25/04 - 14:23 Post subject:
| Pebbles wrote: | try here
I know the online applications are a pain but it could give you an idea of what type of rate you could have approved...then go to your local bank and see if they will give you the same rate or better. |
Does applying for multiple loans have the same impact on your credit score as applying for multiple credit cards?
|
|
|
|
|
jrjo
Gone Fishin
|
|
|
Joined: 15 May 2002
Posts: 16451
Location: Lake Wobegon, MN
|
| Back to top
|
|
Posted: 10/25/04 - 14:23 Post subject:
Do you rent or own?
I'm kinda guessing renting. I'd suggest looking at buying. It's a buyer's market in much of MN right now. Then you can take a 2nd on the mortgage if the equity is there and get a rate around 5%. Able to deduct the interest too.
|
|
|
|
|
Pug
The Movie Geek
|
|
|
Joined: 21 Aug 2003
Posts: 8924
|
| Back to top
|
|
Posted: 10/25/04 - 14:25 Post subject:
| jrjo wrote: | Do you rent or own?
I'm kinda guessing renting. I'd suggest looking at buying. It's a buyer's market in much of MN right now. Then you can take a 2nd on the mortgage if the equity is there and get a rate around 5%. Able to deduct the interest too. |
Take a 2nd what on the mortgage?
We rent and home buying is something we're going to be looking into in the next year or two.
|
|
|
|
|
akern
Member
|
|
|
Joined: 31 May 2002
Posts: 17149
Location: CTU
|
| Back to top
|
|
Posted: 10/25/04 - 14:30 Post subject:
Maybe buy a home first. I'm no money expert, but you'd be surprised at the options you have once you own a home. Like you the hubby and I had quite the credit card debt to get rid of when we bought our first house but were able to consolidate and pay it off quicker with a 15 yr loan. I'm not sure what kind of loans you can get without owning a home.
|
|
|
|
|
jrjo
Gone Fishin
|
|
|
Joined: 15 May 2002
Posts: 16451
Location: Lake Wobegon, MN
|
| Back to top
|
|
Posted: 10/25/04 - 14:31 Post subject:
| Pug wrote: | Take a 2nd what on the mortgage?
We rent and home buying is something we're going to be looking into in the next year or two. |
A 2nd mortage on the home. The equity you have is used as collateral for a loan to a second mortgager. And being a buyers market, you'll likely be able to buy for less than the appraisal. Then turn around and use the appraisal to calculate the equity. With a good lender, you can likely get it all closed up at the same time, first and second mortgages.
|
|
|
|
|
Pebbles
Member
|
|
|
Joined: 21 May 2002
Posts: 2947
Location: Bedrock
|
| Back to top
|
|
Posted: 10/25/04 - 14:33 Post subject:
| Pug wrote: |
Does applying for multiple loans have the same impact on your credit score as applying for multiple credit cards? |
Guess I should have phased that differently--not really an application, you give a little info about yourself, name, email addy, credit history and the area you are from and they have a customer service rep contact you to let you know if you qualify and at what rate. no obligation whatsoever and shouldn't impact your credit history.
Although I agree with Jrjo, you can get a much better rate if you have the equity.
|
|
|
|
|
sonnylax
Member
|
|
|
Joined: 30 Sep 2003
Posts: 2942
Location: Living in a lollipop and unicorn world
|
| Back to top
|
|
Posted: 10/25/04 - 14:38 Post subject:
Not much help - But if they have that much debt, I doubt they will qualify for a decent mortgage rate (or have anything for a decent down payment).
|
|
|
|
|
Pug
The Movie Geek
|
|
|
Joined: 21 Aug 2003
Posts: 8924
|
| Back to top
|
|
Posted: 10/25/04 - 14:39 Post subject:
| sonnylax wrote: | | Not much help - But if they have that much debt, I doubt they will qualify for a decent mortgage rate (or have anything for a decent down payment). |
The down payment is what's gonna kill us.
|
|
|
|
|
akern
Member
|
|
|
Joined: 31 May 2002
Posts: 17149
Location: CTU
|
| Back to top
|
|
Posted: 10/25/04 - 14:40 Post subject:
| sonnylax wrote: | | Not much help - But if they have that much debt, I doubt they will qualify for a decent mortgage rate (or have anything for a decent down payment). |
You won't get the best rate out there- for sure, but it still beats the heck out of credit card intrest.
|
|
|
|
|
Pug
The Movie Geek
|
|
|
Joined: 21 Aug 2003
Posts: 8924
|
| Back to top
|
|
Posted: 10/25/04 - 14:41 Post subject:
We have thought about when we buy a house just getting a mortgage to also cover the credit card balance.
What we've been thinking about lately is a 5 yr loan. Monthly payments would be much less than what we're paying now across all the cards.
|
|
|
|
|
alyson98
Member
|
|
|
Joined: 26 May 2004
Posts: 1602
Location: Down East
|
| Back to top
|
|
Posted: 10/25/04 - 14:45 Post subject:
| Pug wrote: |
The down payment is what's gonna kill us. |
There's was to buy a home with no money down. You can get an 80/20 loan, which is alerady a second mortgage. So you wouldn't be able to get a 2nd to pay the credit card debt.
Join the military and get a sign on bonus.  Kidding really.
Seriously, you should meet with a mortgage broker and ask all these questions before you decide to do anything with any of your debt. Or maybe a CPA. That's why they exist in the world. A lot of people have credit card debt and want to buy a house. You just need to figure out what the right opition for you is.
|
|
|
|
|
rolling rock
The Pinball
|
|
|
Joined: 15 May 2002
Posts: 16218
Location: unknown zone
|
| Back to top
|
|
Posted: 10/25/04 - 14:45 Post subject:
| Pug wrote: |
The down payment is what's gonna kill us. |
do they still do FHA loans? this is how we got our first house -- very low down payment required for first time home buyers. banks usually hate to get involved with the FHA cuz it's a federal govt red-tape agency but it's the only way we could have gotten into our first home -- but, yikes, that was in the late 80s.
unsecured loans are gonna have the highest interest rate out there. 
|
|
|
|
|
alyson98
Member
|
|
|
Joined: 26 May 2004
Posts: 1602
Location: Down East
|
| Back to top
|
|
Posted: 10/25/04 - 14:46 Post subject:
| Pug wrote: | We have thought about when we buy a house just getting a mortgage to also cover the credit card balance.
|
I believe that is in fact illegal.
|
|
|
|
