The Saving Advice Forums - A classic personal finance community.

What to pay off first?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    Originally posted by pdweaver View Post
    You said the refi on the first loan was a no go due to LTV? Who is the loan through? The government has changed a few of the rules with the HARP program to allow people to refi even if they are upside down on their mortgage. Ask to see if you qualify. Most banks aren't starting this until the new year, so whoever you were dealing with may not have even known yet. Chase bank for example is starting this in January. Check on this to save money there and apply it towards the HELOAN.

    I always like to pay the highest balance and highest rate down first. You are currently paying around $227 in interest every payment to the HELOAN. Doing this you will save the most money.

    If you already have 6-12 months emergency savings fund, i would start putting that money you were saving towards your HELOAN. Unless you are making more than 6.5% in savings, which you are not, then i would apply that money towards your loans.
    Chase Bank NA holds the loan on the 1st, and it's backed by Fannie/Freddie. They are who we tried to refi with. We attempted to do so, with the latest HARP changes, but were denied.

    In person/over the phone, we were told that a) Since we used the first HARP legislation back in 2009, we were ineligible for any consideration under that program even with new rules. b) HARP aside, the bank could refi us if they wanted to, but they don't--stating loan:value as the reason and that they were not interested.

    The kicker is that after that phone conversation, we received an official "denial" letter in the mail. There was no mention of the above, and the reason for denial was "credit." Possible reasons stated something to the effect of insufficient credit, low credit score, length of time accounts have been open. Quite frankly, I laughed my ass off. I pulled my Experian report, the same as they had done, and the Experian report in my hands was almost 20 points higher for a total credit score at 800. My other half's was 826. We have more assets than ever, and some accounts have been open 10+ years. Whatever.

    That's my rant about big bank arrogance--and it appears that its appendages don't communicate.

    I'm leary of tossing my emergency fund at the 2nd mortgage. Tax return--yes, but emergency fund? Seems risky.
    History will judge the complicit.

    Comment


    • #17
      I wasn't saying to put your emergency fund towards the HELOAN, only excess money that you are applying towards savings. Do not touch your 12 months reserve fund.

      I use to work at Chase, so i understand your frustration. There is a stipulation I believe you needed to have the loan prior to 2008 in order to be able to refi, so that might be the reason. I would call them back after the new year and speak to someone else and see if you get a different answer, it can't hurt.

      LTV with the new HARP and even credit shouldn't be much of a factor. Try again and good luck.

      Comment


      • #18
        In regards to the credit scores, at least for my wife and I on our mortgage, the average of the two low scores were used to determine credit score for the rate and I am sure other factors. Not saying that is the case for you, but something to look into being you noticed a 'discrepancy' in you scores.

        Comment


        • #19
          pay the cars off

          The car loans. We have both cars paid for and its a great feeling.

          Comment


          • #20
            Your problem is not these loans, it's your lifestyle. If you and your partner could live like you make $50K a year instead of $170K a year, these loans would go away in about 6 months. You guys could be completely debt free in about 5 years including the house.

            If I were in your shoes, I'd pay these loans off smallest to largest balance as fast as I possibly could. With your combined incomes this should take just a few months, the interest rates over that period would mean little.

            Like DisneySteve said, you guys should sit down together and figure out where all this money is going.

            Comment

            Working...
            X