Is now the time for me to refinance and consolidate by debt?

View your credit file based on any of the UK credit reference agencies, or all three at once
LifeLock is the only Identity Theft Prevention Solution backed by a one-million dollar guarantee!Click here to get a 10% discount.

LifeLock Identity Theft Prevention - Save 10%

Here is the deal, i own a home in st.petersburg florida valued at around 200,000. I have owned the home for a little over 2 years now. The purchase price was 120,000. I pay the mortgage to the previous owner on a monthly basis of 689.00. It is a 30 year loan, at a fixed 6 % rate. In september, in order to keep up with my property and insurance taxes, i took out a home equity line of credit with bank of america. Right now, i have used about 6500.00 of the 25,000 limit(it is a 10 year HELOC). If you were in my position, what would you do?. Just keep paying on both these loans like i have been, or seek to refinance the entire amount, to pay off the previous owner, and the HELOC. Thank you for your time

Is now the time for me to refinance and consolidate by debt?

I believe you are asking the wrong question. You need to ask can I afford this house. You had to borrow money to pay taxes and insurance. they are going to occur every year and most likely increase each year. It is mandatory to be setting aside money each month so when you get the tax and insurance bill you have the cash to pay them. If you would have financed through a conventional channel you would be required to pay that money into an escrow account monthly in the form of a higher house payment.

You need to immediately get on a budget setting aside that money in a separate checking account each month or you will eventually get swallowed up by debt. Cut your lifestyle a little and pay that HELOC off in the next year or two and start setting aside the money for taxes and insurance.

FirstPrevious12 3 Next End

Is now the time for me to refinance and consolidate by debt?

Topic