You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “Smartest way to pay debt refinance, home equity loan or a payment plan?”.
-
Archives
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
-
Resources
-
Meta
ARCHIE
Ditech.com. Debt Relief Consultants.
TRENTON
Go to a local bank and take out a fixed rate fully amortized 2nd mortgage. They don’t charge any fees for this.
Leave your money in your 401k earning a nice rate of return.
Make extra payments on the 2nd mortgage when possible to pay it off earlier.
Don’t use your credit cards after you consolidate!
CHRIS
I would leave your 401K alone. You should only tap into that for emergencies. Sounds like a home equity loan might be the best route for you. The interest is tax deductable too. Be careful to not get into debt again. Not sure what you mean by a payment plan. If you can set up a schedule and stick to it that would be an option depending on the interest rate. If the Home Equity rate is less that would be better.
Be careful of those debt services too. They can actually make your credit worse by following their payment schedules. You get out of debt but end up with bad credit.
RUSTY
You should be able to get a second mortgage which would probably be lower than any payment plan in which you don’t even have to touch your first mortgage and keep that good rate. You definitely have enough equity to do so.
BURTON
A home equity line of credit would make the most sense. I just had this same scenario and after much research and my CPA this is what I did. Borrowing on the 401k is a definite no no-don’t even go there. Refinancing would commit a large amount or all of your equity along with high closing costs, points, and little flexibility on payback terms and amount borrowed.
Home equity line is being offered from competitive lenders at prime + 0% with no closing costs. You can borrow as little or as much of the total line when you want and pay it back over flexible terms without refinancing large amount at now higher than your current rate. Refi your prob looking at 6.5% ballpark with closing costs and all negatives above vs prime (8%) with much greater flexibility and save the difference by no closing costs.
I just did it myself and happy about my decision. Good luck!
ALFREDO
There’s some really good advice here. With that kind of equity in your home, you should really have some give a mortgage analysis for you.
You are certainly on track by looking to consolidate your bills and let your home do the work for you.
Definitely leave the 401k alone. I can show you a couple of different ways where you can keep everything the same, but by restructuring your debt, you can set yourself up for retirment.
Feel free to contact me at.
Or you can check out my site at caseycasperson.com