Financial Advice For A Friend

[Johnny Rockets]

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

Ah that sucks.......so many people in that position right now. Hope it works out for him.

[The Saltman]

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

lol thats for sure

[dimbee]

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.

That becomes an entirely different scenario. That would be considered a "cash out" refinance, and he does have the equity to consolidate his debt with the mortgage and still be below 80% LTV (assuming the estimated value is accurate). However, cashing out on a refi with a FICO score of 623 is going to be nasty. He's going to have to pay a minimum of 1 Discount Point (probably more) to buy down his rate. If his middle FICO score (3 bureaus- Equifax, Experian, Trans Union) comes in below 620, I don't have an investor that will buy that mortgage... i.e. no deal.

[The Saltman]

That becomes an entirely different scenario. That would be considered a "cash out" refinance, and he does have the equity to consolidate his debt with the mortgage and still be below 80% LTV (assuming the estimated value is accurate). However, cashing out on a refi with a FICO score of 623 is going to be nasty. He's going to have to pay a minimum of 1 Discount Point (probably more) to buy down his rate. If his middle FICO score (3 bureaus- Equifax, Experian, Trans Union) comes in below 620, I don't have an investor that will buy that mortgage... i.e. no deal.

thanks for your advice buddy...ill let him know.

[dimbee]

Happy to help! Good luck to him!

[The Saltman]

now would refinancing the mortgage and getting a HELOC and paying off the credit card debt work?

[dimbee]

now would refinancing the mortgage and getting a HELOC and paying off the credit card debt that way work?

If he can find a bank/lender to offer a HELOC with that FICO score, then it's worth looking into... but I doubt he'll find one

[Hawk]

not sure the rules there...but can he get a HELOC for an amount high enough to pay off the card and the mortgage? Maybe not with the current score???

I did that a number of years ago and saved myself a poo load of $$$$

[Hawk]

poo...never mind...you just asked the same question I think!!!

[The Saltman]

yup.

[Johnny Rockets]

Wonder if he could get a HELOC?

[Jase]

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

[The Saltman]

:iagree:

[The Saltman]

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

Ill tell him