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blqbutterfly

HELOC or HE Loan

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I have owned my home for 15 years -- HARP program done in 2011 - current interest rate is 2% for balance of loan (2035) current balance is $281k. Value today is $435k roughly. All I want is a HELOC or Home Equity Loan to pay off all my unsecured debt of $87k (I know long story). The problem I'm having is my debt to income ratio is high (54%), which in turn is affecting my credit scores.

 

Current Fico 08 scores

 

TU 623; EQ 584; EX 605

 

How can I qualify for one of these to fix this debt to income ratio problem and close or at least sock drawer these cards (Preferably close).

 

Oh my income is $80k gross and I do a few side hustles here and there. I am a Realtor but not really getting much business at this time.

 

Please advise if what I'm trying to do is possible.

 

PS I do not want to do a refinance because of the 2% interest rate on the first.

 

Thanks for any advise you might have.

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Your revolving utilization may be what's hurting your scores, but DTI has nothing to do with it. Income isn't a factor in FICO scores.

 

Scores in the 600 range would indicate other negatives reporting which may present other financing obstacles.

 

Regardless, the very last few things I would do to extinguish $87,000 in credit card debt are, in no particular order, bankruptcy, 401(k) loan, and risking my home by pledging it as security against debt that is currently unsecured.

 

How long would it take you to pay this off using money leftover after non-negotiable expenses?

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Thanks so much for your response. I would love help with a plan to do this. I will be working seasonal for the holidays part time. My take home is $4760 per month.

 

My monthly expenses are:

 

Mortgage $1886.42

Car Lease $753 (this is bad I don't know how to get out of this lease its been one year)

Utilities: $275 -phone internet cable and power water

Groceries $80 a month (need to stop eating out altogether)

Car Insurance: $156

Verizon - $91

loan - $137

loan - $172

 

and then I have about $1400 worth of credit card payments every month...I have no idea how I'm doing all of this. I have one med collection account for emergency room visit in 2015 for $1450 that I'm not paying its just sitting there. Otherwise there is the horrible credit utilization.

 

Side note I do a lot of side hustles to make these payments on time and I just need to fix this and cut up the cards. I do not want to ever do bankruptcy again. It just fell off in 2016.

 

Thanks again!

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Thanks so much for your response. I would love help with a plan to do this. I will be working seasonal for the holidays part time. My take home is $4760 per month.

 

My monthly expenses are:

 

Mortgage $1886.42

Car Lease $753 (this is bad I don't know how to get out of this lease its been one year)

Utilities: $275 -phone internet cable and power water

Groceries $80 a month (need to stop eating out altogether)

Car Insurance: $156

Verizon - $91

loan - $137

loan - $172

 

and then I have about $1400 worth of credit card payments every month...I have no idea how I'm doing all of this. I have one med collection account for emergency room visit in 2015 for $1450 that I'm not paying its just sitting there. Otherwise there is the horrible credit utilization.

 

Side note I do a lot of side hustles to make these payments on time and I just need to fix this and cut up the cards. I do not want to ever do bankruptcy again. It just fell off in 2016.

 

Thanks again!

 

 

That's about 104% of your take-home pay committed.

 

Is the $1,400 on credit cards the minimum payments?

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No the minimum payments are about $1200, the extra I use to pay the smaller ones down -- a debt snowball.

 

This is why I'm getting the second job it will bring about $1200 a month extra and I'll just continue to snowball it.

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No the minimum payments are about $1200, the extra I use to pay the smaller ones down -- a debt snowball.

 

This is why I'm getting the second job it will bring about $1200 a month extra and I'll just continue to snowball it.

 

That makes sense. More income is a variable you can control, so I'm glad to see you pulling that lever.

 

The other variable you can control is some of your expenses. Shop your car insurance around. Cancel your cable TV service and downgrade your Internet connection (I'm typing this from my 5 MBps service). $91 a month for mobile phone service is a lot. Get Consumer Cellular or one of the other MVNOs and cut that by 50-75%.

 

As for the debt itself, you have at least two paths from here.

 

First, you could seek advice in the Credit Forum on how to pay down your individual cards' utilizations down to an optimal point (not my expertise) to position you for 0% or low-interest balance transfers, since this may not be an option with your current high utilization. Parking some of this debt at lower APRs and working on the higher-interest debt first would be your fastest AND least expensive way out of this. But it might take some planning to be able to do this.

 

A potential option to manage your DTI might be to shift some of your revolving debt to installment (i.e., take out a consolidation loan from Prosper/Lending Club, etc.) and then get an equity loan/LOC based on your new DTI. You'd have to do the math to see if this would lower your monthly payments enough to qualify for one of the HE options (do you know what DTI is required?). I've already stated that I'm not a fan of this approach; I'd much rather see you execute the first option described above.

 

IF you decide to shift your revolving debt to installment AND/OR to debt secured by your home, please first have an honest conversation with yourself and make sure that you have the discipline to keep with the plan. If you don't, you'll end up in an even worse spot (secured debt, a new installment loan AND even more revolving debt).

 

I would also start planning now for how to get into a lower-priced car payment, even if it's at/near the end of the current lease. Many manufacturers will let you turn in a car X months early if you lease another car from them... you could pick a lower-end model. In reality, however, unless there are extremely compelling financial considerations for leasing I would skip that option altogether. Getting a new car every 2-4 years is one of most people's largest obstacles to financial security.

 

I just helped a younger friend buy a low-mileage certified 2014 Jetta with $0 down. We got him financed at ~2%, VW Credit made his first payment, and he's humming along at $230 a month.

 

We could afford to drive pretty much anything we want, but our cars are 2008, 2010 and 2011s. We could be leasing three cars at $500-700/month each, but I'd much rather put that $1,500-$2,100 a month toward extra mortgage payments.

Edited by cv91915

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Thanks so much for your response. I would love help with a plan to do this. I will be working seasonal for the holidays part time. My take home is $4760 per month.

 

My monthly expenses are:

 

Mortgage $1886.42

Car Lease $753 (this is bad I don't know how to get out of this lease its been one year)

Utilities: $275 -phone internet cable and power water

Groceries $80 a month (need to stop eating out altogether)

Car Insurance: $156

Verizon - $91

loan - $137

loan - $172

 

and then I have about $1400 worth of credit card payments every month...I have no idea how I'm doing all of this. I have one med collection account for emergency room visit in 2015 for $1450 that I'm not paying its just sitting there. Otherwise there is the horrible credit utilization.

 

Side note I do a lot of side hustles to make these payments on time and I just need to fix this and cut up the cards. I do not want to ever do bankruptcy again. It just fell off in 2016.

 

Thanks again!

 

Your best bet is to just sell the house and rent something a lot cheaper. Use the equity to pay off the credit cards/students loans. Then you can start saving $2400 a month until you can get out of that car lease and you'll really be set. You'll have enough for a down payment on a cheaper house in no time.

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Your best bet is to just sell the house and rent something a lot cheaper. Use the equity to pay off the credit cards/students loans. Then you can start saving $2400 a month until you can get out of that car lease and you'll really be set. You'll have enough for a down payment on a cheaper house in no time.

 

 

That's assuming OP isn't already in a "cheap" house for her market, and that rent is cheaper in her market than her current mortgage (she won't qualify for a mortgage with her current FICO's), and it ignores the capital gains impact. It's possible that OP is in more house than she needs, but that's a lot of assumptions to simply say "sell your house"

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Either way it makes sense. Even if rent is the same as the mortgage, which I doubt. OPs been there 15 years owner occupied no capital gains on that. Even if OP could get a home equity loan which I doubt, it will be high interest with 80% or lower ltv, leaving a balance on the credit cards. The monthlys will barely go down leaving OP pay check to pay check still.

 

With all that equity its the only logical choice to stop the bleeding of interest every month. That 150k can pay off all the credit cards some of the student loans and still leave an emergency fund.

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Sorry I tried to do as many of side hustles as possible this weekend to prepare for this week's minimum payments etc.

 

First I'm not interested in selling my house. I live in a small house 1271 sq ft where I am seeing the value rise very quickly due to the new RAMS stadium. If I were to move and rent a place I could rent my home right now for $2400 easily, my mortgage (PITI) is $1886.24. I'm not interested in this option right now. Rent in my neighborhood is more than what I pay for my mortgage. However, my original thought was do the equity loan pay on it for a few years and consider maybe refinancing back into one loan. Otherwise I'll just keep paying the equity until its paid off.

 

Student loans are deferred until April 2018.

 

CV - I think you are right on the money. Unfortunately I traded in another car that had negative equity that this ease is supposed to absorb. However, if I go now to trade it in (I've tried) there is some negative equity to the tune of 10k (they say). So I figured I'd ride the wave I've been in the lease one year in November. But you better believe I'm downsizing to a Honda or an Acura as soon as year 2 hits. The lease ends November 2019. I would love a $300 payment.

 

Lastly, so I have been reading/studying CB for a while and I'm currently snowballing, but I never thought about the points you make re: auto ins, internet and cable. I'll work on switching those out right now. I love Consumer Cellular it will drop my bill to $40 a month.

 

PS -- I have been preapproved by DCU for a HE Loan at 4.74% for 10 years for $50k pending appraisal -- not quite sure if i should go this route, payments will be $524.

 

Thank you all for your different perspectives. Gives me some thing to think about.

Edited by blqbutterfly

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Sorry I tried to do as many of side hustles as possible this weekend to prepare for this week's minimum payments etc.

 

First I'm not interested in selling my house. I live in a small house 1271 sq ft where I am seeing the value rise very quickly due to the new RAMS stadium. If I were to move and rent a place I could rent my home right now for $2400 easily, my mortgage (PITI) is $1886.24. I'm not interested in this option right now. Rent in my neighborhood is more than what I pay for my mortgage. However, my original thought was do the equity loan pay on it for a few years and consider maybe refinancing back into one loan. Otherwise I'll just keep paying the equity until its paid off.

 

Student loans are deferred until April 2018.

 

CV - I think you are right on the money. Unfortunately I traded in another car that had negative equity that this ease is supposed to absorb. However, if I go now to trade it in (I've tried) there is some negative equity to the tune of 10k (they say). So I figured I'd ride the wave I've been in the lease one year in November. But you better believe I'm downsizing to a Honda or an Acura as soon as year 2 hits. The lease ends November 2019. I would love a $300 payment.

 

Lastly, so I have been reading/studying CB for a while and I'm currently snowballing, but I never thought about the points you make re: auto ins, internet and cable. I'll work on switching those out right now. I love Consumer Cellular it will drop my bill to $40 a month.

 

PS -- I have been preapproved by DCU for a HE Loan at 4.74% for 10 years for $50k pending appraisal -- not quite sure if i should go this route, payments will be $524.

 

Thank you all for your different perspectives. Gives me some thing to think about.

 

Best wishes for however you choose to deal with this.

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Sorry I tried to do as many of side hustles as possible this weekend to prepare for this week's minimum payments etc.

 

First I'm not interested in selling my house. I live in a small house 1271 sq ft where I am seeing the value rise very quickly due to the new RAMS stadium. If I were to move and rent a place I could rent my home right now for $2400 easily, my mortgage (PITI) is $1886.24. I'm not interested in this option right now. Rent in my neighborhood is more than what I pay for my mortgage. However, my original thought was do the equity loan pay on it for a few years and consider maybe refinancing back into one loan. Otherwise I'll just keep paying the equity until its paid off.

 

Student loans are deferred until April 2018.

 

CV - I think you are right on the money. Unfortunately I traded in another car that had negative equity that this ease is supposed to absorb. However, if I go now to trade it in (I've tried) there is some negative equity to the tune of 10k (they say). So I figured I'd ride the wave I've been in the lease one year in November. But you better believe I'm downsizing to a Honda or an Acura as soon as year 2 hits. The lease ends November 2019. I would love a $300 payment.

 

Lastly, so I have been reading/studying CB for a while and I'm currently snowballing, but I never thought about the points you make re: auto ins, internet and cable. I'll work on switching those out right now. I love Consumer Cellular it will drop my bill to $40 a month.

 

PS -- I have been preapproved by DCU for a HE Loan at 4.74% for 10 years for $50k pending appraisal -- not quite sure if i should go this route, payments will be $524.

 

Thank you all for your different perspectives. Gives me some thing to think about.

 

Best wishes for however you choose to deal with this.

 

Thank you and I appreciate your time and advice.

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Sorry I tried to do as many of side hustles as possible this weekend to prepare for this week's minimum payments etc.

 

First I'm not interested in selling my house. I live in a small house 1271 sq ft where I am seeing the value rise very quickly due to the new RAMS stadium. If I were to move and rent a place I could rent my home right now for $2400 easily, my mortgage (PITI) is $1886.24. I'm not interested in this option right now. Rent in my neighborhood is more than what I pay for my mortgage. However, my original thought was do the equity loan pay on it for a few years and consider maybe refinancing back into one loan. Otherwise I'll just keep paying the equity until its paid off.

 

Student loans are deferred until April 2018.

 

CV - I think you are right on the money. Unfortunately I traded in another car that had negative equity that this ease is supposed to absorb. However, if I go now to trade it in (I've tried) there is some negative equity to the tune of 10k (they say). So I figured I'd ride the wave I've been in the lease one year in November. But you better believe I'm downsizing to a Honda or an Acura as soon as year 2 hits. The lease ends November 2019. I would love a $300 payment.

 

Lastly, so I have been reading/studying CB for a while and I'm currently snowballing, but I never thought about the points you make re: auto ins, internet and cable. I'll work on switching those out right now. I love Consumer Cellular it will drop my bill to $40 a month.

 

PS -- I have been preapproved by DCU for a HE Loan at 4.74% for 10 years for $50k pending appraisal -- not quite sure if i should go this route, payments will be $524.

 

Thank you all for your different perspectives. Gives me some thing to think about.

 

Sounds offly risky in your situation, if you didn't have all the debt racking up interest I'd be all about letting it ride. At the same time things that go up quick, go down quick too. You could pay payments for the next year and a half just for housing prices to go down leaving you stuck in the house while student loans kick in leaving you unable to pay everything.

 

Right now could be your last chance to break clean just because you can't rent a house for the same price doesn't mean much. How many extras are you paying on that house utilities, maintenance? What if you moved to an apartment would the total price be a lot cheaper?

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Sorry I tried to do as many of side hustles as possible this weekend to prepare for this week's minimum payments etc.

 

First I'm not interested in selling my house. I live in a small house 1271 sq ft where I am seeing the value rise very quickly due to the new RAMS stadium. If I were to move and rent a place I could rent my home right now for $2400 easily, my mortgage (PITI) is $1886.24. I'm not interested in this option right now. Rent in my neighborhood is more than what I pay for my mortgage. However, my original thought was do the equity loan pay on it for a few years and consider maybe refinancing back into one loan. Otherwise I'll just keep paying the equity until its paid off.

 

Student loans are deferred until April 2018.

 

CV - I think you are right on the money. Unfortunately I traded in another car that had negative equity that this ease is supposed to absorb. However, if I go now to trade it in (I've tried) there is some negative equity to the tune of 10k (they say). So I figured I'd ride the wave I've been in the lease one year in November. But you better believe I'm downsizing to a Honda or an Acura as soon as year 2 hits. The lease ends November 2019. I would love a $300 payment.

 

Lastly, so I have been reading/studying CB for a while and I'm currently snowballing, but I never thought about the points you make re: auto ins, internet and cable. I'll work on switching those out right now. I love Consumer Cellular it will drop my bill to $40 a month.

 

PS -- I have been preapproved by DCU for a HE Loan at 4.74% for 10 years for $50k pending appraisal -- not quite sure if i should go this route, payments will be $524.

 

Thank you all for your different perspectives. Gives me some thing to think about.

 

Sounds offly risky in your situation, if you didn't have all the debt racking up interest I'd be all about letting it ride. At the same time things that go up quick, go down quick too. You could pay payments for the next year and a half just for housing prices to go down leaving you stuck in the house while student loans kick in leaving you unable to pay everything.

 

Right now could be your last chance to break clean just because you can't rent a house for the same price doesn't mean much. How many extras are you paying on that house utilities, maintenance? What if you moved to an apartment would the total price be a lot cheaper?

 

I respectfully disagree I am a Realtor.. we are not near the top yet in my neighborhood and honestly I have no plans to ever sell my home. I do however, plan to do some more repairs (lots of repairs are needed) in the next year and rent it out. Yes if I rented an apartment it would be about $300 cheaper at the most as rents are rising rapidly with a 1 bedroom being offered at $1395 these days. My other option is I can easily rent a room in my home now for about $600 a month.

 

But the best news is i sealed the deal on a part time job for the holidays so for the next two and a half months I'll have some extra funds to pay off a few things and get myself in a better place and I got my annual raise today on my regular daytime job which gives me a little extra as well.

 

I'm going to be able to work this out with a lot of discipline. Thanks so much for your advice and opinion.

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Nice job landing the seasonal job! :good:

 

You've done a thoughtful analysis of your housing options, and I agree. It never occurred to me to suggest that you sell in the first place.

 

Also, the proper treatment of the trademark is REALTOR®. ;)

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Nice job landing the seasonal job! :good:

 

You've done a thoughtful analysis of your housing options, and I agree. It never occurred to me to suggest that you sell in the first place.

 

Also, the proper treatment of the trademark is REALTOR®. ;)

Thanks so much!

 

You are right I should use the create REALTOR® trademark!

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Airbnb would be an option.

I have a friend in Dallas that used Airbnb to rent out a room. A guy getting his pilots license rented it for $900/month.

 

Dang! I'll think about that...that's some good monthly income.

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Sorry I tried to do as many of side hustles as possible this weekend to prepare for this week's minimum payments etc.

 

First I'm not interested in selling my house. I live in a small house 1271 sq ft where I am seeing the value rise very quickly due to the new RAMS stadium. If I were to move and rent a place I could rent my home right now for $2400 easily, my mortgage (PITI) is $1886.24. I'm not interested in this option right now. Rent in my neighborhood is more than what I pay for my mortgage. However, my original thought was do the equity loan pay on it for a few years and consider maybe refinancing back into one loan. Otherwise I'll just keep paying the equity until its paid off.

 

Student loans are deferred until April 2018.

 

CV - I think you are right on the money. Unfortunately I traded in another car that had negative equity that this ease is supposed to absorb. However, if I go now to trade it in (I've tried) there is some negative equity to the tune of 10k (they say). So I figured I'd ride the wave I've been in the lease one year in November. But you better believe I'm downsizing to a Honda or an Acura as soon as year 2 hits. The lease ends November 2019. I would love a $300 payment.

 

Lastly, so I have been reading/studying CB for a while and I'm currently snowballing, but I never thought about the points you make re: auto ins, internet and cable. I'll work on switching those out right now. I love Consumer Cellular it will drop my bill to $40 a month.

 

PS -- I have been preapproved by DCU for a HE Loan at 4.74% for 10 years for $50k pending appraisal -- not quite sure if i should go this route, payments will be $524.

 

Thank you all for your different perspectives. Gives me some thing to think about.

 

Sounds offly risky in your situation, if you didn't have all the debt racking up interest I'd be all about letting it ride. At the same time things that go up quick, go down quick too. You could pay payments for the next year and a half just for housing prices to go down leaving you stuck in the house while student loans kick in leaving you unable to pay everything.

 

Right now could be your last chance to break clean just because you can't rent a house for the same price doesn't mean much. How many extras are you paying on that house utilities, maintenance? What if you moved to an apartment would the total price be a lot cheaper?

 

I respectfully disagree I am a Realtor.. we are not near the top yet in my neighborhood and honestly I have no plans to ever sell my home. I do however, plan to do some more repairs (lots of repairs are needed) in the next year and rent it out. Yes if I rented an apartment it would be about $300 cheaper at the most as rents are rising rapidly with a 1 bedroom being offered at $1395 these days. My other option is I can easily rent a room in my home now for about $600 a month.

 

But the best news is i sealed the deal on a part time job for the holidays so for the next two and a half months I'll have some extra funds to pay off a few things and get myself in a better place and I got my annual raise today on my regular daytime job which gives me a little extra as well.

 

I'm going to be able to work this out with a lot of discipline. Thanks so much for your advice and opinion.

 

 

I'm in real estate myself. I know and work for about 5 realtors, all of them seem to have too high of expectations. No matter how many times they are wrong on too high of a value they just keep being optimistic. Every now and then they do hit a home run with sheer luck. I'm not that optimistic, I'd take the money and run while I could. Mainly because I'd hate the thought of working a full time job and a part time job having no free time and still no money. I like my free time and my money in the bank I guess thats just me though to each their own.

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Sorry I tried to do as many of side hustles as possible this weekend to prepare for this week's minimum payments etc.

 

First I'm not interested in selling my house. I live in a small house 1271 sq ft where I am seeing the value rise very quickly due to the new RAMS stadium. If I were to move and rent a place I could rent my home right now for $2400 easily, my mortgage (PITI) is $1886.24. I'm not interested in this option right now. Rent in my neighborhood is more than what I pay for my mortgage. However, my original thought was do the equity loan pay on it for a few years and consider maybe refinancing back into one loan. Otherwise I'll just keep paying the equity until its paid off.

 

Student loans are deferred until April 2018.

 

CV - I think you are right on the money. Unfortunately I traded in another car that had negative equity that this ease is supposed to absorb. However, if I go now to trade it in (I've tried) there is some negative equity to the tune of 10k (they say). So I figured I'd ride the wave I've been in the lease one year in November. But you better believe I'm downsizing to a Honda or an Acura as soon as year 2 hits. The lease ends November 2019. I would love a $300 payment.

 

Lastly, so I have been reading/studying CB for a while and I'm currently snowballing, but I never thought about the points you make re: auto ins, internet and cable. I'll work on switching those out right now. I love Consumer Cellular it will drop my bill to $40 a month.

 

PS -- I have been preapproved by DCU for a HE Loan at 4.74% for 10 years for $50k pending appraisal -- not quite sure if i should go this route, payments will be $524.

 

Thank you all for your different perspectives. Gives me some thing to think about.

 

Sounds offly risky in your situation, if you didn't have all the debt racking up interest I'd be all about letting it ride. At the same time things that go up quick, go down quick too. You could pay payments for the next year and a half just for housing prices to go down leaving you stuck in the house while student loans kick in leaving you unable to pay everything.

 

Right now could be your last chance to break clean just because you can't rent a house for the same price doesn't mean much. How many extras are you paying on that house utilities, maintenance? What if you moved to an apartment would the total price be a lot cheaper?

 

I respectfully disagree I am a Realtor.. we are not near the top yet in my neighborhood and honestly I have no plans to ever sell my home. I do however, plan to do some more repairs (lots of repairs are needed) in the next year and rent it out. Yes if I rented an apartment it would be about $300 cheaper at the most as rents are rising rapidly with a 1 bedroom being offered at $1395 these days. My other option is I can easily rent a room in my home now for about $600 a month.

 

But the best news is i sealed the deal on a part time job for the holidays so for the next two and a half months I'll have some extra funds to pay off a few things and get myself in a better place and I got my annual raise today on my regular daytime job which gives me a little extra as well.

 

I'm going to be able to work this out with a lot of discipline. Thanks so much for your advice and opinion.

 

 

I'm in real estate myself. I know and work for about 5 realtors, all of them seem to have too high of expectations. No matter how many times they are wrong on too high of a value they just keep being optimistic. Every now and then they do hit a home run with sheer luck. I'm not that optimistic, I'd take the money and run while I could. Mainly because I'd hate the thought of working a full time job and a part time job having no free time and still no money. I like my free time and my money in the bank I guess thats just me though to each their own.

 

I respect your knowledge and your opinion. For me, its not in the cards for me to sell at this time.

 

I of course love money in the bank and having my free time, but I also realize that I got myself into this mess and I will definitely get myself out of it.

 

In my opinion, as a Realtor you have to be optimistic or you might as well not be in the business. We all are aware there will be times when we will get it wrong. By know means am I saying I'm going to make a million dollars off my house...I don't even think I'll get close to that. However, since i started this post my value has went up from $434k to $468k in two weeks-- it's too soon to bail out now.

 

Thank you for your time and opinion.

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Are you calculating though Zillow or the like?

 

I’ve made literally $203k plus in the past 10 months per those types of sites.

 

Wouldn’t that be nice.....

 

Just another kind of FAKO.

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For which rental value or sale value? For rentals there is one directly across the street that is smaller than my home currently renting for $2400 to a section 8 tenant.

 

My home was appraised last week for $468k. I'm in the business so I actually look at comps that have sold in my area. Currently, we are averaging about $368 per sq foot which is very close to the appraisal done and received last week.

 

I do not use sites such as Zillow and Truila. I learned very early on in my career that they were fakos!

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Sorry I tried to do as many of side hustles as possible this weekend to prepare for this week's minimum payments etc.

 

First I'm not interested in selling my house. I live in a small house 1271 sq ft where I am seeing the value rise very quickly due to the new RAMS stadium. If I were to move and rent a place I could rent my home right now for $2400 easily, my mortgage (PITI) is $1886.24. I'm not interested in this option right now. Rent in my neighborhood is more than what I pay for my mortgage. However, my original thought was do the equity loan pay on it for a few years and consider maybe refinancing back into one loan. Otherwise I'll just keep paying the equity until its paid off.

 

Student loans are deferred until April 2018.

 

CV - I think you are right on the money. Unfortunately I traded in another car that had negative equity that this ease is supposed to absorb. However, if I go now to trade it in (I've tried) there is some negative equity to the tune of 10k (they say). So I figured I'd ride the wave I've been in the lease one year in November. But you better believe I'm downsizing to a Honda or an Acura as soon as year 2 hits. The lease ends November 2019. I would love a $300 payment.

 

Lastly, so I have been reading/studying CB for a while and I'm currently snowballing, but I never thought about the points you make re: auto ins, internet and cable. I'll work on switching those out right now. I love Consumer Cellular it will drop my bill to $40 a month.

 

PS -- I have been preapproved by DCU for a HE Loan at 4.74% for 10 years for $50k pending appraisal -- not quite sure if i should go this route, payments will be $524.

 

Thank you all for your different perspectives. Gives me some thing to think about.

 

Sounds offly risky in your situation, if you didn't have all the debt racking up interest I'd be all about letting it ride. At the same time things that go up quick, go down quick too. You could pay payments for the next year and a half just for housing prices to go down leaving you stuck in the house while student loans kick in leaving you unable to pay everything.

 

Right now could be your last chance to break clean just because you can't rent a house for the same price doesn't mean much. How many extras are you paying on that house utilities, maintenance? What if you moved to an apartment would the total price be a lot cheaper?

 

I respectfully disagree I am a Realtor.. we are not near the top yet in my neighborhood and honestly I have no plans to ever sell my home. I do however, plan to do some more repairs (lots of repairs are needed) in the next year and rent it out. Yes if I rented an apartment it would be about $300 cheaper at the most as rents are rising rapidly with a 1 bedroom being offered at $1395 these days. My other option is I can easily rent a room in my home now for about $600 a month.

 

But the best news is i sealed the deal on a part time job for the holidays so for the next two and a half months I'll have some extra funds to pay off a few things and get myself in a better place and I got my annual raise today on my regular daytime job which gives me a little extra as well.

 

I'm going to be able to work this out with a lot of discipline. Thanks so much for your advice and opinion.

 

 

I'm in real estate myself. I know and work for about 5 realtors, all of them seem to have too high of expectations. No matter how many times they are wrong on too high of a value they just keep being optimistic. Every now and then they do hit a home run with sheer luck. I'm not that optimistic, I'd take the money and run while I could. Mainly because I'd hate the thought of working a full time job and a part time job having no free time and still no money. I like my free time and my money in the bank I guess thats just me though to each their own.

 

I respect your knowledge and your opinion. For me, its not in the cards for me to sell at this time.

 

I of course love money in the bank and having my free time, but I also realize that I got myself into this mess and I will definitely get myself out of it.

 

In my opinion, as a Realtor you have to be optimistic or you might as well not be in the business. We all are aware there will be times when we will get it wrong. By know means am I saying I'm going to make a million dollars off my house...I don't even think I'll get close to that. However, since i started this post my value has went up from $434k to $468k in two weeks-- it's too soon to bail out now.

 

Thank you for your time and opinion.

 

 

Funny right after that post I went to one of my realtor customers houses and told her about a house I saw. She got really excited and wanted to partner on a flip, we went to go look at it turned out to be a dud. She kept trying to down play some of the stuff at first and wanted to go for it. She realized it was a no go though.

 

Do you need the repairs to get the 468k or is that as is? How much in repairs are needed?

 

I'm in a live in flip myself and don't want to move. When I bought I was planning on moving at the 2 year owner occupied mark. Here I am 3 months past that and still dunno if I'll move in the spring. Stuff like painting and the kitchen seems like too much work with the house occupied. At the same time I don't want to have to move all my stuff again.

 

No need to wish you good luck, you know what needs to be done, hard work one way or another. You'll make it just fine.

Edited by oldblue

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Sorry I tried to do as many of side hustles as possible this weekend to prepare for this week's minimum payments etc.

 

First I'm not interested in selling my house. I live in a small house 1271 sq ft where I am seeing the value rise very quickly due to the new RAMS stadium. If I were to move and rent a place I could rent my home right now for $2400 easily, my mortgage (PITI) is $1886.24. I'm not interested in this option right now. Rent in my neighborhood is more than what I pay for my mortgage. However, my original thought was do the equity loan pay on it for a few years and consider maybe refinancing back into one loan. Otherwise I'll just keep paying the equity until its paid off.

 

Student loans are deferred until April 2018.

 

CV - I think you are right on the money. Unfortunately I traded in another car that had negative equity that this ease is supposed to absorb. However, if I go now to trade it in (I've tried) there is some negative equity to the tune of 10k (they say). So I figured I'd ride the wave I've been in the lease one year in November. But you better believe I'm downsizing to a Honda or an Acura as soon as year 2 hits. The lease ends November 2019. I would love a $300 payment.

 

Lastly, so I have been reading/studying CB for a while and I'm currently snowballing, but I never thought about the points you make re: auto ins, internet and cable. I'll work on switching those out right now. I love Consumer Cellular it will drop my bill to $40 a month.

 

PS -- I have been preapproved by DCU for a HE Loan at 4.74% for 10 years for $50k pending appraisal -- not quite sure if i should go this route, payments will be $524.

 

Thank you all for your different perspectives. Gives me some thing to think about.

 

Sounds offly risky in your situation, if you didn't have all the debt racking up interest I'd be all about letting it ride. At the same time things that go up quick, go down quick too. You could pay payments for the next year and a half just for housing prices to go down leaving you stuck in the house while student loans kick in leaving you unable to pay everything.

 

Right now could be your last chance to break clean just because you can't rent a house for the same price doesn't mean much. How many extras are you paying on that house utilities, maintenance? What if you moved to an apartment would the total price be a lot cheaper?

 

I respectfully disagree I am a Realtor.. we are not near the top yet in my neighborhood and honestly I have no plans to ever sell my home. I do however, plan to do some more repairs (lots of repairs are needed) in the next year and rent it out. Yes if I rented an apartment it would be about $300 cheaper at the most as rents are rising rapidly with a 1 bedroom being offered at $1395 these days. My other option is I can easily rent a room in my home now for about $600 a month.

 

But the best news is i sealed the deal on a part time job for the holidays so for the next two and a half months I'll have some extra funds to pay off a few things and get myself in a better place and I got my annual raise today on my regular daytime job which gives me a little extra as well.

 

I'm going to be able to work this out with a lot of discipline. Thanks so much for your advice and opinion.

 

 

I'm in real estate myself. I know and work for about 5 realtors, all of them seem to have too high of expectations. No matter how many times they are wrong on too high of a value they just keep being optimistic. Every now and then they do hit a home run with sheer luck. I'm not that optimistic, I'd take the money and run while I could. Mainly because I'd hate the thought of working a full time job and a part time job having no free time and still no money. I like my free time and my money in the bank I guess thats just me though to each their own.

 

I respect your knowledge and your opinion. For me, its not in the cards for me to sell at this time.

 

I of course love money in the bank and having my free time, but I also realize that I got myself into this mess and I will definitely get myself out of it.

 

In my opinion, as a Realtor you have to be optimistic or you might as well not be in the business. We all are aware there will be times when we will get it wrong. By know means am I saying I'm going to make a million dollars off my house...I don't even think I'll get close to that. However, since i started this post my value has went up from $434k to $468k in two weeks-- it's too soon to bail out now.

 

Thank you for your time and opinion.

 

 

Funny right after that post I went to one of my realtor customers houses and told her about a house I saw. She got really excited and wanted to partner on a flip, we went to go look at it turned out to be a dud. She kept trying to down play some of the stuff at first and wanted to go for it. She realized it was a no go though.

 

Do you need the repairs to get the 468k or is that as is? How much in repairs are needed?

 

I'm in a live in flip myself and don't want to move. When I bought I was planning on moving at the 2 year owner occupied mark. Here I am 3 months past that and still dunno if I'll move in the spring. Stuff like painting and the kitchen seems like too much work with the house occupied. At the same time I don't want to have to move all my stuff again.

 

No need to wish you good luck, you know what needs to be done, hard work one way or another. You'll make it just fine.

 

That's as is right now $468k without any repairs.

 

The repairs needed are some exterior paint, some concrete work, probably could use some new garage doors, stuff like that. This is how I got into so much debt trying to make it more livable, (electrical, windows, interior paint, refinish hardwood floors) comfortable because it just makes no sense for me to leave and buy another property when I have equity and a 2% mortgage rate for the life of the loan. You are right I'm doing just fine, the second job is helping out tremendously and I'll just keep it going. I'll also jump back into the Real Estate game early part of next year as well. I've since cut down some of my essentials per CV's suggestions so at the moment its working out. Thanks again.

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Thought I'd give a quick update. I did not refinance or sell the house, but value has improved nicely to about $520k.

 

However, I did pay off most of the $87k in the last eight months, leaving me with about $7k to finish by December if not sooner. I managed to close four RE deals, drove Lyft everyday almost (sigh) and cut down on all the extra utilities etc. and got a renter for six months. Now, I'm just working on closing accounts slowly and hoping for no adverse action but I am realistic there may be some. I started with some of the toy cards after a post I did here on CB a few days ago. Someone advised I start slowly with the lowest cards so I closed three $100 limit cards that had already had some adverse action back in December. Next stop getting out of the lease next month.

 

Thanks so much for all the advice.

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