Question: > > I presently owe $25,000 on a $60,000 home with 7.5% interest. The note > > is about $350.00 a month but I pay $550 a month to try and pay it off > > faster. I also have about $30,000 in credit card debt with an average > > interest rate of about 16% which I pay $1000 a month towards. I have > > no other debts.

> > I have been shopping around for a debt consolidation loan to both > > consolidate and refinance my debt. The best deal that I’ve been > > offered (meaning the bank will give me the most money at a reasonable > > rate) is a $54,000 -first- mortgage which will refinance my $25,000 > > mortgage and leave me about $26,000 to refinance my credit card debt > > and about $3,000 in closing costs at a 7.375% interest rate.

> > My credit is only fair but I’ve been trying really hard to get a > > handle on everything for the past few years and I think I’ve been > > doing a pretty good job of it because it was much worse. At my present > > rate, I will be totally debt free in 5 years which is my goal. > > However, if it is possible and a good deal, I would like to refinance > > the biggest amount of my debt as possible and this seems like the best > > way to do it as I haven’t received any other comparable offers. So, I > > wanted to throw it out to the experts since I’m no financial genius. > > Your advice is greatly appreciated.

Answer: Good for you! I realize sometimes a big load of debt is unavoidable, but you sound like you’re on the right track.

The only other caution I can think of is maybe to have an expert–I guess that would mean an attorney –look over the mortgage document you’re considering. Make sure there aren’t any unusual clauses that might be a problem, such as a prepayment penalty on the principal.

Why not take the extra $200 per month that you are putting toward the mortgage and pay that $200 toward the credit card debt, which is costing you a lot more?

Related posts:

1. Need advice on whether to consider a mortgage refinance
2. Financial Advice for College Graduate – 401(k) vs. debt
3. Need advice – Debt Consolidation
4. PMI and mortgage questions
5. Advice on mortgage and home inspection process
6. Getting a home loan
7. Need advice on whether to consider a mortgage refinance
8. Mortgage Interest……good grief!!!!
9. First time home buyers as well
10. debt consolidation?
11. Advice on Debt Consolidation
12. Advice on possible consolidation/equity loan (LONG)

In Consolidation Loans. You can leave a response, or trackback from your site.