bejewell asked:


We have terrible credit and would like to pay off all of our debt and start fresh. We own our home and have probably about $40,000 in equity. We’d like to refi the house, take the equity out and pay off our debt - it’s the only option we can think of besides declaring bankruptcy. But honestly with bad credit I don;t know that this is even an option for us, and if it is, I don’t even know where to start.

Is it a good idea, and if so, where can we look for a refi that will loan to people with really bad credit?

If it’s not a good idea, is bankruptcy our only other option? We live paycheck to paycheck right now and don’t have any other way of paying off the debt.

Thanks!
To the answerer telling me to “grow up” — please don’t judge. We are trying to grow up and get out of debt the best way we can. We have a ten-month old baby to consider and want to do what is best for all of us. We have made some bad choices in the past and have learned some lessons the hard way - we accept full responsibility for our past decisions and we’re doing the best we can. I just need helpful guidance - not tacky comments to make me feel even worse about the situation!!

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emartel01 asked:


Last I heard, George Bush passed a law regarding interest rates for home loans. Can someone explain to me?

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79T40P asked:


Im having a new house built as im typing this. Im interested in getting a new car and im wondering what would be best option for me. At the time that i will move in, i wont have any items to pay other than the mortgage and things that accompany a new home. Im wondering how long should i wait before seeking a Home Equity Line of Credit or a Home Equity Loan. Im Pretty sure my house will appraise for much more than I initally paid for it, since i have a finished basement, deck, and land scaping not to mention all upgraded options.

Could some one please give me some advice?

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curios_liz asked:


I applied for a home equity loan so I can consolidate my debt. I was asking for a lot less than the equity I have for my home available. I was denied because the bank said my DTI was 65% and they only allow up to a 50% DTI. But when I got my credit report and added up all my monthly payments reported, my DTI using only my salary is 53.5%. If I include my child support, which I did inform the bank I receive, my DTI is 49.6%. I don’t understand where the bank got the 65% DTI. I did also inform the bank I was going to consolidate my debt. If I had received the loan, with my new payment and all the rest gone, my DTI would then be 44.3% or 41.2% respectively. If I call the bank and ask for a detailed explanation on how they came up with their calculations, will they give it to me? Or do they not have to? Thanks for all your help….

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shawnj985 asked:


I have started the process of refinancing my home equity loan from 9% to a lower rate. It currently has a balance of $10K.

I have also started the process of refinancing my home mortgage from 6.8 to around 5 something hopefully. It has a balance of $54k with 10 years to go on the current loan. I was originally thinking of just refinancing the mortgage with a 10 year payment period without taking out any additional moneys.

Question: Should I refinance my mortgage, taking out enough to also pay off my home equity loan as well? Thanks

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operaphantom2003 asked:


Seven years ago, a family member bought a condo with a VA home loan. The mortgage company sold the account to Fleet who stopped sending bills or coupons for payments. Essentially, they screwed my family member and after two late payments (it took 18 days to process because there was no payment coupon included) they started foreclosure procedures. Really bad company to do business with. She had no choice but to file bankruptcy. They forclosed on her in less then two months and the condo sat vacant for over a year and a half. No one helped her and the mortgage company even hung up on me when I called them. Can she qualify for a VA home loan again?

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celisa asked:


I heard that taking out a Home Equity loans to pay off my private student loans is an option. They are several loans through Sallie May resulting in $79,000 including interest, but are not consolidated. What are your opinions?

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tarl m asked:


I was told that the mortgage companies and banks are going to reset (re-write) home loans starting on Oct 1st. Why are they waiting so long? If they re-set the loans now they will receive monthly payments and people will stay in their homes. If they continue to wait until oct 1st more people will be walking out on their homes cause they cant make the higher payments.
This same greed has caused the problem, the banks should take what they can now and not loose more money.

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Sammy asked:


Example, car being traded in is worth $26K with a loan payoff of $30K.
If the car I want is $26K, is the full $30K financed again (the dealer gets my trade-in, pays off the $30K then finances $26K for the new car + the $4K negative equity)?
If the car I want is $34K, is $38K financed (the dealer gets my trade-in, pays off the $30K then finances the $4K negative equity + $34K for the new car)?
If the car I want is $28K, is the amount financed $32K (the dealer gets my trade-in, pays off the $30K then finances $28K for the new car + the $4K negative equity)?
If the car I want is $24K, is the amount financed $28K (the dealer gets my trade-in, pays off the $30K and finances the $4K negative equity + $24K for the new car)?
These calculations are driving me crazy and I want to be sure I have this straight before negotiating for the new car.

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