So, I am in a situation where I had a good job for years w/o a degree, bought a condo, got laid off and now working again, but I think the real solution is to go back and finish my bachelor’s degree. In order to do this, I would like to quit my job this fall or sometime next year to finish my junior and senior year full time instead of just going part time. One thing is for sure and that is I start my junior year of college this fall, I just don’t know if it will be full time or part time. The college is night classes which makes it good for the part time option. The problem with not working and going to school full time is making my mortgage payment. My condo is worth 240K from the bad economy and have a 190K loan against it. (I had a good down payment from a previous house sale). My current APR on the condo is 5.875%. I got a GFE on a basic refinance (5.125% w/o points or fees) and it came back I would pay $1210 per month w/ taxes instead of the $1315 per month I’m paying now. I’m also considering not refinancing because it is only a $105 savings per month and I plan to sell in 3 years after I get my degree. If I don’t refinance, I am thinking of going with a line of credit (home equity loan) with the bank I have the home loan with and then quit my job when school starts. I would then use the money from the line of credit to pay my mortgage while I’m in school. I think the percentage rate was around 6.5%. I wouldn’t need to use the home equity loan until my senior year of college though. I currently have $24,000 severance from the lay off I plan to use during my junior year to pay my mortgage. Then when that money is gone, I would plan to use the line of credit during my senior year. I like the line of credit because I only pay interest on what has been taking out. Second option instead of the line of credit: Instead of the home equity loan for my senior year of college, I could refinance the condo and “take cash out”. I have not looked into this option. If I take $30,000 out, I could put it in a CD for a year and then it would be used for my senior year of college to pay my mortgage. I know it is not a good situation for me, but I’m trying to make the best of it. Does the home equity loan sound better or the refinance?
Posts Tagged ‘Taking’
I want to buy a new car by taking cash out of my home that is mortgage free. Is this the way to go or not?
I own my home free and clear. It’s appraised at $950,000. I want to buy a new truck and was thinking of tapping some equity-$30,000 – to pay off the car and pay the loan on the home equity loan instead. The car payment- with financing- would be around $530 a month. The home equity loan would require me to pay about $300 a month. On the surface it looks as if the home equity loan is the way to go. Just wondering if anyone else has done this and what risks/ regrets you had if any?
Forgot to mention income:$80,000 combined income with my wife. Excellent credit/ FICO SCORE 840. No outstanding debts other than 1 credit card with a $200 balance. Never had credit problems and would not have trouble making the monthly on the loan. I just would much rather pay less monthly using my equity vs. Financing through a dealership- some thing about car dealers that makes me weary. With a fixed payment on the equity loan, I would feel more at ease. I’m not one of those people that uses their house as an ATM. My old truck died and I really need another one to get around and go to work. This purchase is because of need rather than want. Just wanted to clarify. Thanks
Are home loan lenders taking advantage of Yahweh’s people?
The bible says If you lend money to any of Yahweh’s people, you will not demand interest from them.
Exodus 22:24
http://www.thebricktestament.com/the_law/lending_money/ex22_24.html
For a Loan-First Time Home buyer. What is the risk in taking out a No Doc Loan.?
Is it risky taking out a no doc mortgage loan?
Will taking out a home equity loan make it hard if I want to sell and buy a house?
I need to take out a loan (and consolidate) to pay bills that have higher interest rates. But what if I want to move before i have finished paying the loan off? How will that affect mortgage applications, etc.?
Is taking a home equity loan to buy new vehicle and pay bills the smart way to go?
want to buy new vehicle but still owe on present one plus have other loans. My house is paid for would it be a wise choce to do a home equity loan rather than take an nother car loan. I know nothen about homae equity loans
Which one to go for while taking a home loan.Fixed/Floating rate of interest.What are the differences?
Which one to go for while taking a home loan.Fixed/Floating rate of interest.What are the differences?
What are the benefits of each one of the above?
What are some risk in taking out a first time home loan?
I want to take out a first time buyers home loan and go purchase house with tthe loan and sell the house for $2,0000 maybe 3,0000 above market value and pay off the loan instantly and make revenue is it safe what are some risks in doing this?
My parents are taking out a home equity loan to lend me money to start a business, does anyone get taxed?
I’m looking to open a shop and my parents offered to lend me some money to help out. They are taking out a home equity loan to lend me about $35,000 to $55,000. I agreed to pay them back. Because they are taking out a loan do they have to pay any taxes? Do I have to pay taxes on this money?
I don’t have any assets so I wouldn’t be able to get a loan for the amounts of money I posted.
Does taking out a home equity line hurt my credit score?
My broker opened up a home equity line for me where I was borrowing 100% of the available line. It seems like it reduced my credit score quite drastically.
do banks lend first time home buyer loans? as in, no down payment required, but taking a class or something.?
also, how much (estimate) would a bank approve for an income of 31000/year and credit score of around 620? i dont think i would qualify for a loan even though my job has been stable (5 years). i would love to buy a home, but i dont want to apply for a home loan and get denied.
Which would be better for us, taking out a home equity loan or refinancing?
My husband and I want to take about $15,000 to pay off debt and renovate our home, which we just purchased last July. Our current interest rate is 7.25% and we owe about 65k on our home that appraised at 100k. The problem is that our credit is not great and not well established. Which would be the best option for us, home equity loan or refinance?
How do you pull equity out of your home with taking a how equity loan out?
First of all how do you build equity in a home? How do you report the equity to your lender? And lastly how to you pull the equity that you’ve built up out of the home with out taking a home equity loan out? Thank you in advance for any help that you can give me.
Home Equity Loans: Taking Whatâs Rightfully Yours!
Few of us are familiar with the idea of selling our household items to earn moneyâif youâre not too sure, letâs take a recap. Ever remember having your furniture items sold in a garden sale? Ever sold things from your home to earn a little extra cash? Well, not most of us but there are some who can certainly relate to these situations. These are little instances that put us in the âdire need of moneyâ category. Why not use a slightly different concept to make your money instead? âTake a Home Equity Loan!
Taking a Home Equity Loan is like taking whatâs rightfully yours. Home Equity Loans can be taken by homeowners only. They involve borrowing money against your home; for which you do not have to sell your house. Most of us live in houses that are bought on mortgageâpartly paid for and the remaining still on repayment. The value of your home is the equity it holds.
In a Home Equity Loan, homeowners can borrow money against that value of the house that has already been paid for. You can estimate this amount by calculating the current value of your home and taking away from it that value that you currently owe through your mortgage. Typically, you would stand to get 80% of the amount already paid on your home and not a full 100%. However, there are 125% Home Equity Loans too, where you can even get 125% of the value that you have already paid on your home. These loans would typically charge a higher interest rate compared to Home Equity Loans offering 80% of your homeâs paid value.
A Home Equity Loan is therefore taking whatâs already yours! What better than to borrow against your own assets?
The money obtained from Home Equity Loans can be put to use for any purpose you think important. It can be used to pay up your outstanding bills, pay your insurance premium, make your credit card payment, medical bills, etc. Although the money can be used in any direction you think necessary, it is important that you use it to clear your dues and not for a luxury vacation. Borrowing money against you home may be simple, but taking advantage of easy opportunities would be silly. Ensure that you use this money to repay a bill or make an urgent payment. Remember that you are paying interest on the amount you borrow, so make sure itâs for the right reason.