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another mortgage question

Posted by bill_h (My Page) on
Tue, Apr 18, 06 at 20:34

say i need a 15k mortgage, should i go the mortgage route, or put it on my credit card then pay the credit card off with a line of home equity credit??????????


Follow-Up Postings:

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RE: another mortgage question

Gasp! Sorry...I am a little credit card phobic...
What are you buying for $15k? If you are buying the family estate worth $350K then it might pay to charge away. If someone is selling a bargain and might sell it in an hour then move fast. If not, you face lots of immediate interest (read the fine print and call for costs if you are thinking of writing a convenience check enclosed with your credit card). Cash advance? Higher interest for the life of the loan and then you would face the cost to get a home equity loan and they will notice you owe that $15,000. Better to have the property on it's own loan, preferably with a fixed interest. Good luck...


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RE: another mortgage question

Ditto. The CC company and HELOC company are not going to do their jobs without payment. Why pay twice unless there's an outstanding reason to move very quickly?


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RE: another mortgage question

iam just 15k short of paying cash for a condo iam buying, figure 15k isnt worth a mortgage, so i would put it on cc, then when i got title to the condo, take a heloc and pay the cc off. will only take me a yr or so to pay the 15k off. so just dosent seem worth it to 15k on a 15yr mortgage.


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RE: another mortgage question

iam just 15k short of paying cash for a condo iam buying, figure 15k isnt worth a mortgage, so i would put it on cc, then when i got title to the condo, take a heloc and pay the cc off. will only take me a yr or so to pay the 15k off. so just dosent seem worth it to 15k on a 15yr mortgage.

How do you plan to take a HELOC out immediately after purchasing? Usually, there is a period required before you can be issued one.

Don't think of this as an option unless you confirm a lender will issue the HELOC before committing to the loan.


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RE: another mortgage question

bill if you are going to be able to pay it off in a year does it make sense to refi into a heloc you could end up paying lots in closing costs. if you can stick to paying it off in 1 year I would look at seeing if you have a cc that will offer you a low balance transfer apr. I just got one in the mail yesterday for my universal card offering 4.9% till the balance is paid with no transfer fee. worse case a $15k bal would be around $418 a month to pay it off in 36 months. you can also check with your bank or credit union and see if you can do a signature loan for the 15k just make sure there is no prepayment penalty.
karla


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RE: another mortgage question

Why shouldn't you be able to get a HELOC right after closing on the house, if you have equity? Heck, people are arranging to have 100% financing all the time - an 80% first mortgage and a 20% HELOC at closing. Talk to a mortgage broker. You may very well be able to close on the condo with your huge downpament and get no first mortgage at all, go straight to a HELOC and do it when you close on the property!.


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RE: another mortgage question

If you are going to do that, find out if the CC company will consider that a cash advance and, if so, what interest they will charge (likely higher than a regular purchase).


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RE: another mortgage question

I agree Steve thats why you want to find out if they have any balance transfer offers they dont really care what you use the BT transfer checks for. he could write the check to himself and deposit it into his account.
we did this when they offered us a 1.99% apr for the life of the balance we were putting a screenroom on and the interest we were earning in our money market was much higher so instead of taking the money out of the MM we used the balance transfer check to pay for the screenroom and make the payments out of the MM. the interest we earn on the MM is almost twice what we are paying on the cc.
karla


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RE: another mortgage question

thanks nancy will check into that, since i already have a heloc line of credit, with the house i have now and nothing outstanding on it. maybe they will let me close and transfer the heloc to the new condo, or rewrite it


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