Thanks again for everyone's replies.

I plan on calling a mortgage broker that I know of in the area on Tuesday.
I'm going to tell her what my needs are and hopefully she can take care of
the whole package. Part of it will be helping me to clear up things then
need clearing up on my credit report. I'm pretty sure that mortgage
brokers are able to take care of difficult situations such as mine. She
can exhaust the possibilities for me and hopefully come up with a decent
product. I'll try to post back what I end up doing. Thanks again for all
your help.



"David Efflandt" <efflandt[at]xnet.com> wrote in message
news:slrnd9gq0r.24f.efflandt[at]typhoon.xnet.com...
- quote -


======================================= MODERATOR'S COMMENT:
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On 27 May 2005 17:10:08 GMT, herlihyboy <ryan.parmenter[at]gmail.com> wrote:
- quote -

When I refinanced my existing 7% mortgage through a related bank, I ended
up with a HELOC in place of it, but it has "fixed rate option" at 5.99%.
Closing costs were minimal ($170) with no annual fee or prepayment
penalty.

Its variable rate if I ever borrow against paid off principal is currently
5.5% (prime - 0.5%). But you have to be cautious with a variable HELOC,
because besides the variable interest, you are only required to pay
interest during the term. So if you do not make an effort to also pay
down the principal, you could get stuck with a balloon at the end. Also
if looking at anything with variable rate, check the interest ceiling.
I have seen some with a limit as high as 25% (highway robbery).

Last time I looked, interest rate (and maybe closing costs) for a Home
Equity Loan were higher than a Home Equity Line of Credit. But I rarely
see anything advertised about a fixed rate option for a HELOC.

Lenders are not credit counselors although good ones should be able to
help you. Get a report from ALL THREE companies (experion, equifax, and
transunion) then dispute online or in writing anything that is wrong.

Less than two years in the job isn't too much of a concern, they will
just want previous employment records.

Moving consumer debt into the home is advised against but it is nice to
be able to deduct that interest. Your LTV is good, so I wouldnt worry
about it. They reason they say not to move consumer debt into your
mortgage is that if you fall on hard times, you lose your house. Well,
most likely, if you cant make the car payment, the house payment isnt
going to get made either so you are probably going to lose it anyway.

D. Mathews wrote:
- quote -

Thanks for all the tips you each provided me.

I've never had a bankruptcy. My current loan is adjustable and the current
rate is about 4.5%. If this all works-out, my new combined LTV will be
about 50%; it's currently 25% LTV. Income won't be a problem to support
the new loan amount(s), however I recently changed occupations into a field
that I had been out of for about 8 years or so. I understand being in a
new field for under two years could pose a problem for qualifying my income.
I'll have to see how that works out.

I guess a fixed loan amount and hopefully a fixed-rate will be the way for
me to go with this. I'm also going to need the help of someone to clean-up
items on my report that shouldn't be there. I'm assuming that whatever
lender I choose could help me with that. Does that seem right? Thanks
again for any suggestions.

Personally, I wouldn't tie up consumer debt in my home. Too risky. If
you can't afford to pay it, your house is then at risk. Why are you
trying to cover your debts/obligations with another loan? You're just
moving the debt. Are you hoping to get a better rate overall compared
to the rates on your existing debts.

Watch out for HELOCs if you do end up going that route. The one we
have now [paid off in a few months, thankfully] adjusts with prime, so
right now we're at around 7.5% even though it started very low.

I don't think it is going to be easy getting a 2nd on the home with bad
credit. What's the credit score anyway? Might be able to derive a rate
based on the score, but if you are below 620 I think you will have
problems with any financing. If you are within 80% LTV on your house,
you may still qualify for decent rates. The better credit is normally
needed for special financing, like interest only or an 80/20 program,
combined with a low rate. Since you don't need to be in one of those
programs, you may get the low rate anyway. Today its about 5.7 or
somewhere around that. What is your current rate anyway? I don't
remember rates being that great in 1993. One important thing to note is
that consumer lenders pay a lot of attention (if not all their
attention) to debt to income ratios. Has your income dropped along with
your credit? Bankruptcy within 4 years? Need more info to help you out
here. Never assume anything, always check with a hungry mortgage lender
on a refi, you could be saving yourself a lot of headaches. Make sure
you mention that all the small debts will go away and they will factor
that into your debt-to-income ratio.

In article <7Tdle.1746$rY6.1334[at]newssvr13.news.prodigy.com> ,
"D. Mathews" <nospam[at]nospam.com> wrote:

- quote -

Those are all the same thing, just different names. They all
use equity in your real estate to secure a loan. They will all
have about the same terms and rates.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

I'm hoping I can get some advice on the best way I can satisfy some debts
and am considering the above loan types.

Some basic facts: I currently have a 1st loan on my home which is about 25%
of the House Value. The interest rate on that loan which was taken out
about 12 years ago is very good. Since that time, my credit went pretty
bad for various reasons. Because of that, I'm inclined not to refinance the
1st loan because I know I'll get a terrible rate on the new 1st.

I'm anticipating needing to take an additional 25% from my home value in
order to cover my debts/obligations. So, after all is done, I will have
approximately 50% Loan to Value of my home (comprised of the two loans: my
original 1st plus the new loan).

Knowing that I'm going to get hit with a high interest rate on the new
financing, which type of loan would seem to be most advantageous: 2nd Loan,
Equity Loan, or Credit Line. I am assuming that I could get any of those
types of financing, even with bad credit. Making the payments on the
combined financing arrangements will not be a problem. There will not be
any outstanding personal debt after all the financing is completed: no
credit cards, car loans, etc...

Thanks in advance for any advice anyone can give me.