UnThreaded | Threaded | Whole Thread (306) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: LaraAmber Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 310533  
Subject: Re: Bankrupt or try to 'gut it out'? Date: 11/2/2012 10:25 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
The thought of re-setting the time clock back to ZERO . . . is not very appealing. However, if I can re-fi with a 15 year and still pay pretty much what I am paying on mortgage number 1, then that would be a good deal. But, I don't know if I can do that and I guess the only way to find out is to get off my butt and go start talking to some credit unions.

Your thoughts?

Who says the clock would be reset to 0? Plenty of people refinance solely to take advantage of a big change in interest rates. When we refinanced we went from a 30 year to a 15 year and ended up making the same size payments because the interest change was that drastic in the five years since my husband originally purchased the house. If someone was keeping the same terms, they could continue to make their original payment amount. That extra money each month towards the principal erodes away the years until paid off pretty quickly.

You aren't ready to refinance. You would likely need to have $2,000 cash for closing costs. Right not it's a distraction from what you need to be doing: tracking every penny you spend and creating a year long budget. You need to figure out your monthly expenses and irregular expenses. You need to start figuring out what you need to set aside to get your baby emergency fund ready so the next crisis doesn't go on the cards.

When you've gotten the boat to stop taking on water and the bilge pump(that would be your debt payments) working, then you can figure out when you can start setting aside money for refinancing costs. If your wife can also show a steady paycheck that would also help your refinancing chances in the future.

Right now wouldn't be a good time to do any unnecessary calls to banks, credit unions, and insurance companies regarding houses. They are probably being inundated with calls regarding damaged homes and will be for some time.

Lara Amber
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (306) | Ignore Thread Prev Thread | Prev | Next | Next Thread


TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.