Consolidating credit card debt into my Mortgage loan?
May 26, 2010 by admin
Filed under Consolidating Credit Card Debt
I am looking to buy a property in Columbus, Ohio. I have been approved for a $50,000 loan (Not looking for a fancy house, just something small that suffices my needs), but I have slightly over $7,000 worth of credit card debt. Is it possible to buy a home for, let’s say $40,000, and then increase my mortgage to $47,000 by adding my credit card debt to the loan?
Is there any possible way to do this?
Thank you in advance!!!!!!!!!!!
Also, I’m a first-time home buyer
–I don’t have student loan debt.
I only have Credit Card debt.
Related posts:
No you won’t be able to because a mortgage is a secured loan. You won’t find a lender that will lend more than 100% of the home value. If you don’t have 20% down you’ll pay pmi as well. Pay off your credit card debt, save some money up for down payment and get something where the payments are no more than 30% of your take home pay.
Even if you could, you should not. Because if you do, you are converting an unsecured debt, credit cards, into a secured debt. That means that if you cannot pay it, they can foreclose on your home. As unsecured debt, they is a limit as to what they can do.
As the other person said, pay down your credit card debt separately.
What you are talking about is more of an equity loan than a purchase money loan. You can’t roll in your credit card debt when purchasing the house.
Other things you might want to consider…
Can you afford the house payment (including taxes, insurance, and monthly home owner costs like repairs) AND the $7,000 debt.
Is your debt to income ratio going to be high, thus causing you to be a borrower that is harder to get a loan for.
Are the debts reducing your credit score?
I highly recommend reading Dave Ramsey books. He is a great motivator for how to get out of debt!!!!
Good luck!