how does debt consolidation work?

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    • #413490

      the most it will go down to is 5.1. Just about 1 point. Since you already know about making more payments, I think you should not
      bother with it–just keeping the payments as often as you can.

      and ask the lender about the discounts of making a small extra
      payment every payment day. That can knock off another 12 yrs!

      but I think you are doing great!!

    • #413491

      It’s easy, run the numbers. How much you would pay in fees now and how much you would save if you shaved a point off. If the break even point is around couple years go for it. I’ll wait couple months tho. I feel the rates will get even lower with the feds dropping to 0-.25%, you’ll see sometime in feb.

    • #413492

      You may have picked the perfect time.

      The Feds dropped the rates today! If I were you I would not wait for another rate drop. I think they are going up, up ,up over the next few years.

      Curious about discount real estate agents?

    • #413493

      fix up the home but when you refinance tell your friend you want 5.875 or better you could get it now if you needed.

      i would definately get the upgrades done asap and then refinance but dont wait till the last minute.

      and when you do refinance make sure you get he rate you want and try to get it under 6% its possible now and if things dont go up you should have no trouble getting it

    • #413494

      Nobody really knows where interest rates will be in 6 months. On the one hand, the rapid decline in the dollar versus other currencies makes imports more expensive (from China whose yuan cost 10% more now than last year) which leads to inflation (and thus higher interest rates). This implies that the fed will raise interest rates to prevent inflation.

      On the other hand, if the recent subprimal fear continues, then domestic demand might shrivel up putting our domestic production at risk…this implies that the fed will lower interest rates even more in order to keep us out of recession.

    • #413495

      You may want to refinance now just to get out of that interest only loan. Don’t wait, each day put’s you behind on the priniciple, thus taking away from your equity position.

    • #413496

      No one knows where the interest rates will be in 6 months.

      The FED dropped the discount rate, but that wont effect 30yr fixed mortgages much.

      One thing is for sure… the value of homes in most of the country is going down…. so even after you remodel, you might be lucky to break even value-wise in 6 months…. so I would not bank on your house being worth more in 6 months.

      6.125% is a very good rate right now… they have been hanging over 6.5% lately. I would jump on that.

    • #413497

      With an interest only loan in this market (which means your loan balance may be rising while your home value is falling) you are playing with fire.

      Home prices are falling and interest rates were trending up (as of 8/17/07). Depending on your market, the amount of your refinance, and a host of other factors, the work you do on your home could amount to a hill of beans in terms of added value.

      A mortgage market shake out stems from too many risky subprime and Alt-A loans written without regard to borrowers’ ability to repay, a resultant rise in foreclosures from those unable to pay rate-reset increases in monthly payments and the negative impact of those foreclosures on investment funds that buy and repackage the loans as securities.

      With the securities failing as investment vehicles and some lenders shuttering shops and filing for bankruptcy, lenders have attempted to plug the financial drain, by tightening underwriting standards and by taking many loans off the menu. That means with each passing week you loan choices diminish. That 6.125 percent rate you speak of may no longer exist.

      In addition to lenders tightening money on subprime and Alt-A loans, they are also rising rates on jumbo loans (those of $ 417,000 and more), so they could get you coming and going.

      This is NOT a wait-and-see market.

    • #413498

      I used “Credit Solution” to settle my debt.They managed to reduce my debt up to 58%.It’s legitimate.I came accross this company on NBC News Special Edition.Check it out here:

    • #199261

      how does debt consolidation work and i was wondering if you can do it with an old banruptcy and do you have to add all your debts to it like credit apt. debts or just the ones that are pressing you to get paid like monthly bills

    • #257979

      There are two types.

      The first is a consolidation loan. Pretty much just like any other loan, but they take into consideration that you are actually going to remove your current debts. If you have a bankruptcy against you already, you probably won’t get this type of loan UNLESS you get one from a company who secure the loan against your home. BUT be careful, if your not good at repayments (no offense but it doesn’t sound like you are)m then this could be dangerous, because they WILL take your home.

      The second is more of an agreement.
      A third party organization look into your current finances. They agree with you how much you are capable of re paying every month. They then contact all the companies that you owe money too, explain your situation and ask the if they would work with you and them in coming to a repayment agreement. This will include stopping all interest and late payment charges. You then pay a lump some to the organization, who then give each company the amount that was agreed to be paid each month.

      This services should be free to you, so make sure you find one that is. They make their money from the collectors. They would rather have some money make than no money back.

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