Home Equity Loan - help in consolidation.?

help in consolidation.?

i have student loan 8000 at 5.3% car payment 8050 at 5.9 % another car 6000 at 4.3 % can i take out home equity loan and pay it? does it save me interest rate? i have a house 225000 and the remaining balance is 178000 at 6.3 % in 30 years fixed please i need your help to reduce my payment. my morgage payment is 1440/month no major credit card debt exept rooms to go card 1500 only thanks

Public Comments

I would pull 30000 out and pay off all debt.
Debt consolidation is never the answer to get out of debt. You're just moving the debt and makes it appear that things are better because you're saving a few dollars on interest and only making one payment. This is going to sound weird...but it works. Make minimum payments on everything except the car loan of $6k. Put every extra dollar on that car loan until it's paid. Then, roll that same amount into the student loan of $8k. In other words, attack the debt smallest to largest balance. Checkout my videos (see link below) on how this works. Scott.......
How To Use Home Equity To Pay Off or Consolidate Debt Summary: You can borrow a great amount of money for whatever you want by using your home equity. What could be the most important thing that nearly everyone wants to have in their lives? If you were to ask me, the most important thing that a person must posses is a house. I believe that everybody, even the single individuals, wants to possess a house of their own and call it a home someday. If you own a house, especially for men, it is likely that you just want a place of your own, or it is some sort of preparation to call it a home because the idea of getting married and raising a family are all in your mind. Whatever your reasons might be, owning a home is much more important among other things. Since the market value of a home is continuously increasing, your home could be your best asset. In fact, more and more lenders are offering home equity plans for homeowners. The home equity loans and home equity line of credit are very interesting and tempting ways to borrow a very big amount of money in exchange of your house. Lenders will allow you to borrow a certain amount of money, which is relatively high, and your home will serve as collateral. Isn’t that a wise deal? Lenders are very confident in letting you borrow the amount of money you qualify for because you can’t just carry your home and run away or hide it if you are not able to make the scheduled payment of your loan. Yes, home equity loans and home equity lines maybe the best option if you need a very big amount of money, but think it over a million times. You must always remember that if you can’t make the payment as scheduled, it could mean the loss of your house. Just to give you an idea as to how a home equity is computed and how much can you possibly borrow if you use your home as collateral let me give you an example. Let’s say, the current value of your home is $ 200,000, and you still owe $ 100, 000 on mortgage, the difference between the value of your home and the amount you still owe on mortgage is called home equity. Given that: Your home’s current value $ 200, 000 The amount owed on mortgage $ 100, 000 ------------------------------------------------------------ The home equity is $ 100, 000 And to compute for the potential amount in which you can borrow whether for a home equity loan or home equity lines of credit, the lenders usually set a percentage of your home’s appraised value, let’s say 80 %. Your home’s current value $ 200, 000 Percentage sty by lenders x 80 % Percentage appraised value = $ 160, 000 Minus the amount owed on mortgage - $ 100, 000 ------------------------------------------------------------------------------ Your potential credit $ 60, 000 The actual amount of money that you may borrow will also depend on your ability to repay, debts, and other financial obligations. No matter how tempting the potential credit of your home equity can be, you should have a big and valid reason if you want to consider using your home’s equity. Most people want to use their home’s equity for big reasons like payment for college education, house renovation, or hospital bills. Before you even think of using your home’s equity, you should weigh things over. How big is your need for money? Is it worth putting your house on the line? These are the things you should think over a million times before you put your home at risk.
Consolidating debt is an ideal way to reduce your amount and tenure of debt. You make a single payment to one lender on a certain date and this will help you clear off the debts faster. But the fact remains that debt consolidation is not easy all the times. If you owe a lot of money, obtaining a consolidation loan at the lower rate of interest can be difficult. Choosing a high interest loan can increase your debt. The primary aim to consolidate debt should be to reduce your total costs. To achieve this, you have to consider the following two points: -Shop around for the loan with the lowest interest rate. -Chalk out a strategy to clear off the debts in 3-5 years. The following are some of the best methods of debt consolidation: 1) Credit Cards: If you have good credit rating, you can get a card offering lower interest rate than other types of consolidation loans. Besides, you do not have to deposit any collateral, making it virtually risk-free credit. Find out from the current issuer the interest rate they are willing to give you, for balance transfers from other cards to their cards. Choose a fixed rate if possible and request them not to charge transfer fees. If that is not possible, look around for another card. Many sites offer you a wide choice of cards with different interest rates. But do not apply for plenty of applications simultaneously as it can damage your credit rating.