Need underwater mortgage advice

[Kshome]

Okay I know this is not financially sense but I'm not seeing another way out and would love some opinions. We have an 80/20 mortgage from 2004. We are underwater most likely By $20000 which is about how much is left on the 20% Heloc portion which is currently at 6% interest rate. I have a 17000 personal loan at 13%. I was planning on paying off the personoal loan in 2.5 years. However I can't refinance or sell my home since it is underwater. If I put all the extra mo ey towards they Heloc I could get my home closer to market value. Perhaps then sell it or refinance and rent it out. We really want to move into a bigger home for our growing family and feel trapped. I know I will pay more interest but maybe this way I can sell and not have to be a landlord and stress over two mortgages. Thanks for any advice.

Sarah

[Brian B The Loan Professor]

Okay I know this is not financially sense but I'm not seeing another way out and would love some opinions. We have an 80/20 mortgage from 2004. We are underwater most likely By $20000 which is about how much is left on the 20% Heloc portion which is currently at 6% interest rate. I have a 17000 personal loan at 13%. I was planning on paying off the personoal loan in 2.5 years. However I can't refinance or sell my home since it is underwater. If I put all the extra mo ey towards they Heloc I could get my home closer to market value. Perhaps then sell it or refinance and rent it out. We really want to move into a bigger home for our growing family and feel trapped. I know I will pay more interest but maybe this way I can sell and not have to be a landlord and stress over two mortgages. Thanks for any advice.

Sarah

It sounds like you have come up with the options it is now just a matter of what works best for you? Would you qualify for another home without selling first? You will have to count both mortgages when getting a new loan?

 

B