I am considering buying a house and some land. Where I get into a bind is my car payment. Has anyone ever got their house loan higher to pay off the car? I'm sure there is a way to do it just never have researched it much. Are there any agents in SOMD that could help me out on this?
Buying a house
- Thread starter Magnum
- Start date
Pete
Repete
Ponder this grasshopper;Magnum said:
If you buy a house for $175,000 @ 6% the total interest you will have paid at the end of the loan would be $202,716.
If you add $25,000 to pay off a car and borrow $200,000 (depending if the house would appraise for $25K over selling price) @6% the total interest paid at the endof the loan is $231,676.
You will pay $28,960 more in interest to pay off a $25,000 car. Basically you would pay double for the car.
If you kept the auto loan for 60 months at 10% (an astronimical rate but you are 22 years old) the total interest paid would be $6,870 or $22,090 less in interest.
PS Mortgage companies and banks have rules that keep people from screwing up too badly. I doubt you could do it.
The USDA has programs that allow for no down payment and the borrower may be approved to borrow up to 100% of appraised value. If you find a seller asking $200k for a $220k house... I'm including a link to a news release with more info. I have contact info for the branch manager listed in the article. If you like, I'll PM it to you when I get home (it's on the fridge). He helped us buy last year, with a different mortgage co. He will get my business again, no matter what company he works for.
http://www.rurdev.usda.gov/md/helpavail06052001.htm
http://www.rurdev.usda.gov/md/helpavail06052001.htm
Pete
Repete
Magnum said:
ING:Of course if you only have the house 5 years and sell it the cost of rolling a car into the original mortgage is not that bad.
60 month regular car loan interest paid =$6870
60 month mortgage w/car rolled in (car part)= $7257
BUT
Now you have eaten into the magic 20% LTV and you would get poked in the eye with PPI or a couple hundred a month added to your mortgage for insurance should you default.
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girliegirl
New Member
Rule of thumb, that I was taught at an early age when obtaining my first Mortgage, was to never mix house and car payments. You should always keep the two seperate for reasons already posted above such as interest and what not.Magnum said:
If you do not plan on keeping the house for any real length of time (less then 7 years) consider a 15 year interest only loan. The payments are about 1/2 to 2/3's less then a normal loan because you are only paying the interest with no money going to the principle. With a normal 30 year mortgage loan, you do not really start earning equity in the home by paying down the loan till after about 7 years. The majority of the equity in the early years comes from the increase in local housing costs. (The paper reported yesterday that the local housing costs rose about 30% last year.)
workin hard
Icebox
DoWhat said:
Pete said:
Well no not really. I went to dodge to get a part for my truck, checked out the car and wanted it. I had an 04 Toyota Echo that I traded in. Deal was done in a few hours. Yes I should have thought about it longer, and weighed the pros and cons of this car, but your only young once
