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I am looking to buy a house and take advantage of the beaten down real estate market and tax breaks. Is it a bad idea to take out a larger mortgage and pay off all my other debts such as credit cards? Would it be a bad idea to use some of the excess mortgage to also pay for my wedding? Thanks for your help.

3 Thoughts on Taking more or a mortgage to pay other debts?
  1. Reply
    Judy
    January 4, 2013 at 6:20 pm

    Keep in mind that the amount of credit card debt will directly reduce the monthly mortgage payment you will qualify for.
    Also any credit card debt that touches over 30% of your available balance is reducing your credit rating.
    One thing you do not want when applying for a mortgage is any credit card debt.
    I made an effort to pay mine in full.
    That way you can get the lowest interest rates.
    Word to the wise:
    Do not even think of doing an ARM or anything with the word variable in it when it comes to mortgages.
    Interest rates are about to go up high as soon as inflation starts coming in.
    /

  2. Reply
    ☼AstrologerJuliAnne☼
    January 4, 2013 at 6:45 pm

    Let’s see…in 2005 you probably could get a loan above and beyond what your mortgage would be….today? Nope.

    And, no, it would be stupid to fund your wedding on the back of your house. If you cannot afford to pay for your wedding, you can’t afford to be married, or you need to tone down the event. With the odds against marriages lasting these days, you will still be paying on this wedding and paying a divorce attorney at the same time! LOL

    You will not get any money above whatever your mortgage loan is. That’s a good thing. Too many people used their freaking houses as ATM’s and are now whining and waiting for the messiah (Obama) to come save them.

  3. Reply
    RonBo
    January 4, 2013 at 7:04 pm

    the tax deduction myth is a bad reason to get in debt for a home. I would not put a wedding on a mortgage loan, bad idea. It could be an ok idea to pay off the credit card debt, only if you change the habits that brought on that debt and you stop using credit cards.

    also your not really paying the other debts off. your just moving the money and renaming it. the debt is still there.

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