Posted: 12/19/2014 2:20:40 PM EDT
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Alright GD financial guru's, here's a question for you.
Bought my first house last year, got an amazing deal on it. Paid 110K, appraised at 154K. Only caveat was that due to my short credit history they could only do it on an adjustable rate mortgage. Looking to refinance to a fixed rate before interest rates go up. I make plenty of money to cover my house and truck payment, but my debt to income ratio on paper (I recently started earning commission on my sales in addition to my salary, but they don't count commission until you've been on it for 2 years) is rather high. I owe about 26K on my truck, they can do the refinance if I roll my truck into the mortgage to lower that debt to income ratio. I would be refinancing at 119.5K. Should I fo? |
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Need more info? What rate did you lock in? How long are you looking at...30 yr or 15 yr? You planning to stay in the home how long?
ETA -- Holy shit...completely missed the "roll my truck into the re-fi" part...  That is a big no-go. Glad to see the other people giving you advice caught that.
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Quoted:
Need more info? What rate did you lock in? How long are you looking at...30 yr or 15 yr? You planning to stay in the home how long? 4.12 interest rate, 30 year mortgage. Probably live here for 10 years or so, until I save up enough to get a bigger piece of dirt further away from town. |
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Quoted:
a better choice would be take equity and buy a rental. Use the overage to pay your truck payment. Then you have an investment and a car being paid. I have no desire to be a landlord at this point in my life. I'm 23 and work about 65 hours a week. Don't want to have to deal with keeping up with tenants. |
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Quoted:
Alright GD financial guru's, here's a question for you. Bought my first house last year, got an amazing deal on it. Paid 110K, appraised at 154K. Only caveat was that due to my short credit history they could only do it on an adjustable rate mortgage. Looking to refinance to a fixed rate before interest rates go up. I make plenty of money to cover my house and truck payment, but my debt to income ratio on paper (I recently started earning commission on my sales in addition to my salary, but they don't count commission until you've been on it for 2 years) is rather high. I owe about 26K on my truck, they can do the refinance if I roll my truck into the mortgage to lower that debt to income ratio. I would be refinancing at 119.5K. Should I fo? No, you should not fo. If you make "plenty of money" then start making extra payments on your truck and house for another year or two (resulting in less debt and longer credit history) then come back to revisit the idea of a fixed refi. It's never a good idea to roll your car loan in to your mortgage. |
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So even while holding 30K + in equity, it's still a bad idea? I can see if I didn't have that much in it, I just figured since I could still sell the house and make money I'd be in a good position. Yea, it's a dreadfully bad idea. Get help, you need it. |
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Yea, it's a dreadfully bad idea. Get help, you need it. Quoted:
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So even while holding 30K + in equity, it's still a bad idea? I can see if I didn't have that much in it, I just figured since I could still sell the house and make money I'd be in a good position. Yea, it's a dreadfully bad idea. Get help, you need it. I just got off the phone with our company accountant, according to him with the savings from locking in the interest rate and given the amount of equity in the house it's pretty much a break even since what I pay extra on the mortgage will offset the additional interest on the truck amount. And I'm not going to let the loan drag out 30 years, I'll have it paid off in 12 at least if I don't sell it move first. You've given me some things to consider. Thanks. |