rockhound
Preferred Member
Cash: $ 26.45
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Joined: 03 Feb 2006
Location: West Virginia
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| Occam's Razor |
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And cutting even more directly to the point, the original poster was so desperate to pay off $5,000 in debt that he even may have considered getting a home equity loan on less favorable terms than his current mortgage, with very little equity built up in his home. Does this sound like someone who has "idle cash" or even "positive cash flow"? If he did have $500/month extra laying around he would be well on his way to paying off his debt on his own, and wouldn't have been asking for help. I hope some of these discussions helped the guy.
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Thu Nov 09, 2006 2:31 am |
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coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
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quote:
Originally posted by go2self
Our data shows the more learned a person is the harder it is to understand the process.
Yeah, I've read that somewhere else, too. I don't know whether it's that or just plain old-fashioned dense, but it works out to the same end. 
~Tim~
Eye Candy : Why Whimsy
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Thu Nov 09, 2006 2:36 am |
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Nishima
Member
Cash: $ 3.00
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Joined: 28 Nov 2006
Location: North Carolina
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Umm...perhaps I'm dense or missing something as well.
If you are borrowing $500 to pay on your house...then repaying the $500, it means you have $500 a month "extra" in your budget. Why get a loan and pay the $2.50 plus hassle, paperwork, credit checks, etc?
As coaster already mentioned...why get a loan at all? You have the $500 every 30 days apparently. Most mortgages these days allow prepayment of principle without any penalties.
What is this cycle you mention you can't do without the loan? You have to repay the loan every time no? That's $500 a month anyway you look at it.
Unless your mortgage interest is over 8 or 10%, I would think it's better to invest the $500/mo.
I think your math is a bit fuzzy.
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Mon Dec 04, 2006 8:51 pm |
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Davy Dany
New Member
Cash: $ 1.70
Posts: 8
Joined: 02 Feb 2007
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Got good information from the thread. I was confused abt the credit calculation... The thread helped me to find a good solution...
Thx Guys...
refinance second mortgage|home equiry loan|creditdebtloans
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Fri Feb 02, 2007 6:57 am |
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