laurie m asked:


house worth $560,000 (value)
mortgage loan balance $347,000.00/home equity balance 46,000 the line was 131,000 and we’ve spent 86,000 on home repairs. We have 20,000.00 in credit card debt from an adoption. We make too much to get a credit on any of it. would it make sense to use $20,000.00 of the 45,000.00 left on the equity line to pay off the credit cards???thanks!

ISIDRO

OP-lo asked:


I currently have a stash of cash in a money market earning 3.61% APY. I also have a home improvement project set to start later this month. I have enough cash to cover about 40% of the project. I also have a line of credit locked to prime, currently 5.25%. Should I take some of the cash to max out my Roth IRA and thus borrow that much more against the house assuming investments will earn 8% over time - or - should I minimize my home equity debt in the short term. My job situation is good but not great. I am also putting away 5% of my paycheck monthly into a Roth 401K. I have also considered the fact that I could refinance the equity loan into a new 30 yr mortgage after the project. The downside there is that I am currently at 5.25% 5 years in to a 30 yr mortgage. Thanks for your input.
FYI - even if I used 100% of my equity line, I would still have over 100K in equity on my home. I live just west of Chicago. Our housing market here has slowed but notthing like the devaluations of Florida or the west coast.

JARVIS

aglaia asked:


My credit score is 680. I was told my debt to income ratio is high. Will my credit score increase and will it be better for me if I pay off these debts showing on my account by using my equity line?
1. credit card balance
2. a student loan I co-signed with my son (my son pays the monthly bill)

DARIN

WhoK asked:


We have 2 mortgages (1st & 2nd), my friend withdrew an other line of equity. What happens to the equity line loan if we sell this house short? Can we ask the bank to convert equity loan to personal loan and we continue to pay for it?
Sorry that I was not clear in the question. Basically, on this house, we have 3 loans: 1st mortgage with mortgage company A, 2nd mortgage with mortgage company B (we used 100% financing when bought this house), and the equity loan with a bank (3rd loan that my friend’ sister took out to do something else.)

Now we have problem with the first loan since it is ARM (we didn’t know when signing paper). The rate is reset, we start having problem to pay for it. We want to short sell the house, but not sure what to do with the 3rd loan: the equity loan. For the 1st / 2nd, we may have to pay the tax if the banks agree to let us short-sell the house and issue the 1099-C, but because the third loan (equity loan) is from another bank we are not sure if this bank agrees to release for us to sell the house or willing to renegotiate the loan for us to pay as personal loan.

ESTEBAN