Need Loan advice

[Rage187]

I owe $33,706 on my house
Another $6000 in credit card debt.
Plus I want to borrow another $5000 to remodel.

So roughly $45,000


I want to get a loan that pays off all of the above in 5-6 years. But I'm unsure what type of loan I should get.


Any advice?

BTW: House is worth $60,000, it's a small condo.

 

[kranky]

Why do you want to include your mortgage balance in the new loan? You could simply refinance your mortgage to achieve what you want.

 

[Rage187]

Cause I would rather have 1 bill that would cover everything then 2-3.


My plan is to payoff my house, then start renting it out at $800 a month. I'm going to buy another home and let the rent from my condo pay for my new home.

 

[Muadib]

You would have just one loan!!! Refinance man!!

 

[Rage187]

Worked it out and it would be roughly $800 a month for a payment. Which is $400 less then what we are paying now.


= Profit

 

[Muadib]

Just watch out for hidden fees some underhanded places try to charge.

 

[Vic]

Refinance to a new 10 year fixed rate mortgage and make 5 year payments on it. That would probably be your best deal.

Keep in mind that with such a tiny (by industry standards) loan amount of only $45k, there will have to be some costs (which are capped by industry and law as a percentage of the loan amount) and a slightly higher than market interest rate, but that's just reality, not underhanded. Even if your broker were to charge you the maximum the law allows, he still wouldn't be making any money on a $45k loan. Think of it this way: the appraisal fee all by itself is 1 point.

 

[Rage187]

true