Call around. I say that all the time - but so many companies/banks offer different things. And I mean call 15 to 20 banks/mortage co/brokers. You will be surprized.
A lot depends on your credit score/LTV ratio of the property - is this an investment property or your house? If you have a 700 score and you currently have a 70 LTV - you are looking good.[ Edited by hoober on Date 03/03/2005 ]
I would do the analysis.
1) You don’t have to take mortgage for all $40,000. There are plenty of credit cards that offer 0% of balances transferred for 1 year or longer. You can transfer $3,000 – $10,000 (whatever you feel comfortable with) to the new credit card and take a mortgage or home equity loan for the remaining amount. The thing is: during the year of 0% on the new card you have to save enough to pay off that credit card completely. You don’t want to open another credit card in a year.
2) Before taking mortgage, think about home equity loan. The interest rate is a little higher but closing costs are very small comparing with closing costs on mortgage. You also need to calculate how much you would save or loose during the entire life of the mortgage if you pay points.
get on a billpay system so that the payments are automatically taken off a credit card (if allowed) or from your checking account so that you can NOT miss any payments.
As far as how you use your credit, try to keep the balance owed on your cards to less than 50% used. Allocating the balances among several cards is better than being 50% or more charged on two cards.
yes if she keeps the balance low and you have 75% of the credit limit avaliable at all times... :-D
Call around. I say that all the time - but so many companies/banks offer different things. And I mean call 15 to 20 banks/mortage co/brokers. You will be surprized.
A lot depends on your credit score/LTV ratio of the property - is this an investment property or your house? If you have a 700 score and you currently have a 70 LTV - you are looking good.[ Edited by hoober on Date 03/03/2005 ]
JaCC,
I would do the analysis.
1) You don’t have to take mortgage for all $40,000. There are plenty of credit cards that offer 0% of balances transferred for 1 year or longer. You can transfer $3,000 – $10,000 (whatever you feel comfortable with) to the new credit card and take a mortgage or home equity loan for the remaining amount. The thing is: during the year of 0% on the new card you have to save enough to pay off that credit card completely. You don’t want to open another credit card in a year.
2) Before taking mortgage, think about home equity loan. The interest rate is a little higher but closing costs are very small comparing with closing costs on mortgage. You also need to calculate how much you would save or loose during the entire life of the mortgage if you pay points.
Alla
Thanks so much, I feel better now. I will follow your advice and make some phone calls tomorrow.
get on a billpay system so that the payments are automatically taken off a credit card (if allowed) or from your checking account so that you can NOT miss any payments.
As far as how you use your credit, try to keep the balance owed on your cards to less than 50% used. Allocating the balances among several cards is better than being 50% or more charged on two cards.
Good Luck!