Financial help please?
I sold a home years ago in maryland before bubble burst making enough to pay cash next home and for the one I am now in. I would like to get either a equity loan or morgage to pay off 2 parent plus loans, a car, and credit cards but I am not sure which was is best to go. I do not have any negative on my credit but also do not have a mortgage which I understand helps credit. If I get a mortgage or equity loan for 40K would I most likely qualify for current interest rates even though no morgage? I have a car pmt always on time, 2 credit cards, and 2 parent plus loans on report and that is it at last look. No outstanding debts of any kind. Please advise if looks good and which way to go. Thank you.
I'm not in the financing business, but from what I've heard I think that if the total amount of your monthly debt payments (including the new mortgage/equity loan you want) is less than about 30% of your total regular monthly income and you have a good history of paying everything on time, you would probably be able to get a mortgage even if you don't currently have one. You might not be able to borrow more than about 60-70% of the current value of the house since lenders will want to protect against any possible additional decline in house prices.
