Financial Advice For A Friend

[The Saltman]

Hey guys, I have some questions for any loan or mortgage officers out there for a friend that needs some help. Here is the scenario:

He has a credit score of 623...not very good.

His Yearly household income is 83,000

His Mortgage is at 233,000 and interest rate is at 6.25% with his home value at 328,000

His Credit Card Debt is 20000.

SO with all that in mind is there a possible way for him to refinance and consolidate this debt or is his credit score too low to do any of these things?

thanks for your help guys.

[g5jamz]

Do what I did...but I don't know if he's doing things like this anymore, but dimbee is the resident expert.

PM him.

[Jase]

Get a HELOC for the remaining $95,000 of your equity and go buy a boat, you deserve it.

[The Saltman]

Get a HELOC for the remaining $95,000 of your equity and go buy a boat, you deserve it.

ill tell him

[Jase]

YW

[Hawk]

Get a HELOC for the remaining $95,000 of your equity and go buy a boat, you deserve it.

may as well right...I mean...if you are going to be broke, you may as well have as much fun as possible first!

[Cat]

He's gotta be able to get a lower interest rate.

[Delhommey]

Wow, there is no way I could ever take on that much debt. I'd break out in hives.

[The Saltman]

Wow, there is no way I could ever take on that much debt. I'd break out in hives.

ya I think that is his problem. trying to figure out a way to integrate it with his mortgage and get a better interest rate at the same time.

[Johnny Rockets]

Wow, how in the world can someone afford a $233,000 mortgage while carrying $20K in credit card debt on a household income of $83,000? Guess that is why you are probably asking the question......

Not sure if a lower interet rate with that kind of credit score and that much cc debt is possible or not.. I am curious how the $100K in equity affects it though.....as mentioned, pm Dimbee.

[The Saltman]

Wow, how in the world can someone afford a $233,000 mortgage while carrying $20K in credit card debt on a household income of $83,000? Guess that is why you are probably asking the question......

at the time of the mortgage he had a better paying job and could show better income to get the loan.

[dimbee]

Is 623 his middle FICO score? If so, he can get a loan. He is below 80% Loan To Value. Depending on what are the minimum required payments for his debt, I don't think his Debt To Income ratio will be out of whack. It doesn't hurt for him to at least do some investigating. The 10 year Treasury Bond Yield is still ridiculously low, as are rates. Your friend can easily drop their interest rate by 1 point and more on a 30 year fixed.

[The Saltman]

Is 623 his middle FICO score? If so, he can get a loan. He is below 80% Loan To Value. Depending on what are the minimum required payments for his debt, I don't think his Debt To Income ratio will be out of whack. It doesn't hurt for him to at least do some investigating. The 10 year Treasury Bond Yield is still ridiculously low, as are rates. Your friend can easily drop their interest rate by 1 point and more on a 30 year fixed.

623 is his equifax score...i dont have any more info beyond that. I think his question is if he can get a refi to be able to add the credit card balances to his mortgage and refi for a better interest rate all at the same time.

[Hawk]

one thing is for sure...he needs to chop up that credit card TODAY!