leclercnlakenona asked:
Planning on buying a home, but have racked up some credit card debt. I want to know if I purchase a home, can I consolidate some of my credit card debt as part of the mortgage?
http://1mortgagecalculator.info
Planning on buying a home, but have racked up some credit card debt. I want to know if I purchase a home, can I consolidate some of my credit card debt as part of the mortgage?
http://1mortgagecalculator.info
Depends on the lender and how much you are paying down. Sometimes the lender will require credit card debt be paid. Talk you a lender.
Can you? Yes.
Should you? Absolutely not.
Remember, credit card debt is unsecured debt. a mortgage is secured debt. Doing this will only add to what you owe on your mortgage.
Ask your mortgage co what they think of this idea, you’ll get quite a negative reply.
With the purchase of a home, not normally.
A home loan is a loan secured with the house. Therefore the house has to be worth as much as the loan, and in todays time with all the foreclosures, possibly more than the loan amount. Remember that your points, loan costs, title ins, are usually rolled into the loan. Which depending on those costs could add even another $5000, $10,000 to your home loan. It all adds up quickly.
Are you planning on putting any money down? You may have to withhold that money to pay off your debt. But then you may not qualify for the loan you would like.
Consult a qualified mortgage specialist in your area. My advice is not the ones who advertise loans to people in precarious situations, aka sub-prime lenders. This is the mortgage loan business line that has created most of the issues we have today with foreclosures.
A few ideas:
1. is taking out a second mortgage at time of closing, some of these can go over and above the value of the home to 125%.
2. is a 80/20 loan, this is creative financing, a piggy back loan or combination financing.
3. I would get myself into a mortgage broker and get a pre approval to purchase, talk about the options with the credit debt, and get on the right track to purchasing.
Depends on your credit and lender. I’m no expert but I almost did the same thing. If I were you I would not consolidate credit card debt into the mortgage because that is transferring insecure debt in to a secured loan – secured by the house.
I was being tricked by a mortgage broker who only had his own interest in mind. Fortunately the deal didn’t go through as I learned that it was a terrible idea.
If your credit card debt is that bad you might not should be buying a house right now. Get a place with cheap rent, pay off the cards, cut them up, and then save up for a nice down payment on a home you can comfortably afford.