Debt Consolidation Loan, Home Refinance Or Home Equity Loan? [mortgage-assumption.blogspot.com]
Question by : Can I take an equity cash back refinance loan or home equity loan, lease it, then buy new? Is there anyway to refinance my existing 6 year FHA home loan or do a home equity loan, then lease purchase the home and then buy a new home with down payment from the proceeds from the old home's new financing? Best answer for Can I take an equity cash back refinance loan or home equity loan, lease it, then buy new?:
Answer by loanmasterone
A very good thought. A few years ago this would have worked out perfectly. Why would you want to lease purchase your existing home. You should use this a rental, an income producing property. If you purchased your house 5-6 years ago, I doubt if you have sufficient equity to refinance at this time or get an equity loan. In most cases property has depreciated in value over the past few years, as oppose to appreciating in value. To make sure you have sufficient equity you might consider speaking with an appraiser about the possible value of your property. Keep in mind that a lender would only lend you about 80% of the value of your property. You would then have to pay fees and loan cost. If you have a current mortgage loan the balance of this mortgage loan would be part of the 80%. You might consider joining a local real estate investment group. This group does exactly what you would want to do, only using different techniques, however, obtaining the same results,income property. This group might be able to help with the value of your property. I hope this has been of some benefit to you, good luck. "FIGHT ON"
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Some people, whose home equity wasn't high enough to meet requirements for new loans, can now refinance for the first time, thanks to rising home values. Low interest rates spur mortgage refinancing
Debt consolidation is a way that you can take all of your high interest rate credit card debt, and bring it all under one low monthly loan payment. During the process you will also eliminate all of those high service charge fees you were paying every month, and you will be replacing them with one low monthly service charge. You will knock hundreds of dollars a month off your monthly budget, and you will create a cash flow that you may have never had before.
It all sounds great, but the next thing to consider is how you would go about creating such a great program. The financial world is full of products and plans that can help people move and consolidate money, many of these are loan products like a consolidation loan or a home equity loan. Understanding the differences between these ones, and how using one over the other can help your situation, is what makes a debt consolidation expert stand out among all the other financial professionals in the world.
A professional in this field understands the implications of using various financial products like equity loans, and can use their experience and knowledge to help you make the right decision.
A home equity loan may seem like a great way to take care of your rising monthly debt, but sometimes the terms on a home equity loan can cause the loan to be not such a great deal over time. A variable rate equity loan may wind up costing you more money per month than your credit card debt, and you also have to worry about paying off an equity loan within a set period of time which is usually much faster than a consolidation loan.But there are positive tax implications to an equity loan that may make it a better decision for you.
However, do not worry about it. All you need to do is to make an appointment to speak with a debt consolidation service representative. You will get a chance to weigh all of the properties of the various programs, and then you can make the right decision for you. More Debt Consolidation Loan, Home Refinance Or Home Equity Loan? Topics
