debt consolidating
Date: Thu, 07/28/2005 - 19:02
What is our best option? We have credit card debt nearing $30,000. Our home loan is $150,000 and the home is worth $200,000. Should we do a equity or something else? Thank you
Debt consolidating
Hi Patti
Welcome to the forums
In order to get rid off your unsecured debts and secured debt the best option would be "No Equity Refinance". In this case you do not need any equity in your house. The lender can lend upto 125% of the value of your home.
The advantage of this type of loan is that you can save hundreds of dollars in interests, tax deduction and payments. The disadvantage of this type of loan is that if you do not clear off your debts then you will get into more debt. In addition you cannot also sale of your house until your loan to value ratio comes to 75%.So please do not stress yourself out.
Hope to hear from you soon
Regards
Mike
