Hot answers tagged

241 votes
Accepted

Should I take out a loan to pay off a relative's credit card debt?

This is a very generous impulse on your part. I'm going to criticize it, but please understand that I believe your intentions are great. What can go wrong You pay off her $40,000 debt. She is ...
user avatar
  • 20.8k
116 votes

Should I take out a loan to pay off a relative's credit card debt?

I personally have no financial problems Are you in desperate need of a financial problem? Taking a loan to pay someone else's debt is the fast lane to a financial problem. Unless this is your ...
user avatar
  • 48.5k
62 votes

Should I take out a loan to pay off a relative's credit card debt?

First, you loaning her money is out of the question. In my sternest Suze Orman voice, You Will Not. Money is more intimate than sex, and there is a very wide gulf between "listening to her ...
user avatar
38 votes

HELOC debt is 2x my mortgage, help

The first step is to stop adding to the problem. Get on a written budget, cut expenses to the bone, have a modest emergency fund (1-2 thousand) just to help you get through true emergencies without ...
user avatar
  • 114k
28 votes

Should I take out a loan to pay off a relative's credit card debt?

I currently assist a cousin who is struggling. Like your relative, she and her husband are in their early seventies, retired, and living on a fixed retirement income. Her husband is blind, disabled ...
user avatar
  • 73.7k
25 votes

Should I take out a loan to pay off a relative's credit card debt?

Obtain solid evidence that this debt exists. It is not impossible that she has been misled to believe she has a huge debt by scammers preying on the elderly. If you don't 100% know the debt exists and ...
user avatar
23 votes

Should I take out a loan to pay off a relative's credit card debt?

Of course not. The two options are basically: The bank is out $40k and never gets paid back. You're out $40k and never get paid back. Why trade option 1 for 2? If you want to help her, help her get ...
user avatar
20 votes
Accepted

HELOC vs Federal Student Loan

Is there any difference/advantage for choosing a HELOC vs a Federal Student Loan? Federal Student Loans If you qualify for subsidized loans, no interest accrues while in school. Tax-benefit even ...
user avatar
  • 63.9k
19 votes

How to remove a co-signer from HELOC?

If there is a zero balance, why not shop around for a HELOC (with no co-signer) from another bank/company? Then you can compare that to the offer from your bank to remove the co-signer from your ...
user avatar
18 votes
Accepted

Does home equity grow with the investment put into the house?

The bank I work with would be more inclined to expand an existing HELOC rather than write a new one. I think that would be your best bet if you decide to continue borrowing against your home. Consider ...
user avatar
15 votes

HELOC debt is 2x my mortgage, help

Loans have a tendency to do that, kill you with the interest. Heck even if a person can afford the payments that is what is happening although it is well hidden. I mean after all, all the financial ...
user avatar
  • 74.9k
13 votes

Should I take out a loan to pay off a relative's credit card debt?

Rather than take on secured debt to pay off her unsecured debt, I suggest helping her in other ways. Start looking for resources/programs aimed at assisting those who are ill-prepared for retirement, ...
user avatar
  • 63.9k
12 votes

How does cosigning for a home equity line of credit affect your chances of getting your own loan?

Cosigning the loan means you are legally responsible for the loan, and the loan will likely show up on your credit report. Let's say, for example, that a bank would be willing to give you a loan of $...
user avatar
10 votes

Does home equity grow with the investment put into the house?

If I have a house that its market value went from $100k to $140k can I get HELOC $40K? Maybe - the amount that you can borrow depends on the market value of the house, so if you already have $100k ...
user avatar
  • 114k
9 votes

HELOC debt is 2x my mortgage, help

My HELOC has now grown to approximately double my mortgage So, how did it get there? If it was a one-time thing like you had major medical bills from an emergency, did a major renovation on the ...
user avatar
8 votes
Accepted

Products for withdrawing from a home's equity?

Yes, the product you want is a fixed rate loan. As rates were dropping in the late '90s, I went from a "Mortgage" to a "Home Equity Loan." The latter had a fixed rate, 15 year term, and a crediting ...
user avatar
8 votes
Accepted

What's "bank jail" for US banks?

Wells Fargo in the United States has been embroiled in a series of scandals and missteps for at least half a decade. See the Wells Fargo Account Fraud Scandal for some details. It got to such a point ...
user avatar
7 votes

HELOC debt is 2x my mortgage, help

Your Debt is not something you “work on” - It is a HUGE, FLAMING EMERGENCY!!! The core of the problem is that you are spending more than is sustainable. While re-mortgaging might seem to help, unless ...
user avatar
6 votes

HELOC vs Federal Student Loan

US Federal student loans can't be discharged in bankruptcy, HELOC can.
user avatar
6 votes

Refinance for renovation, use 401k? HELOC? Both?

I would pay off the HELOC today. The "safety" of having $24K in cash/stock is costing you $150 a month in interest. You still can have $16K in liquid savings to handle most all emergencies. From ...
user avatar
  • 114k
6 votes

HELOC vs. Parental Student Loans vs. Second Mortgage?

Thank God you have your child back, it is so awesome that you finally found a medical treatment that worked. It must have been a truly trying time in your lives. That situation is an important ...
user avatar
  • 74.9k
6 votes

Does home equity grow with the investment put into the house?

In short, your scenario could work in theory, but is not realistic... Generally speaking, you can borrow up to some percentage of the value of the property, usually 80-90% though it can vary based on ...
user avatar
  • 1,008
6 votes

Should I take out a loan to pay off a relative's credit card debt?

Read and follow the instructions in this really great article about the subject: https://www.foxbusiness.com/features/lending-to-friends-and-family-your-4-step-guide CHARGE INTEREST I didn't know ...
user avatar
  • 161
6 votes

Should I take out a loan to pay off a relative's credit card debt?

If you are worried about your relative being able to have a place to stay DO NOT PAY THEIR DEBTS. Buy a house/apartment(complex?) and rent it to them. For $1/yr if you must. $40,000 also is quite a ...
user avatar
  • 1,159
5 votes
Accepted

Taking out money on current home for down payment of new home

I am a real estate agent. I know you are in Canada, but will let you know that in the US, agents are not to supposed to offer this kind of advice. They can refer you to a bank or mortgage broker, but ...
user avatar
5 votes

Should I pay extra towards my mortgage or HELOC?

I would tend to put it towards the HELOC... Assuming that you started off with a 150K, 30 year, if you keep going you'd pay off your mortgage about 3.5 years early. Not bad. However you have a ...
user avatar
  • 74.9k
5 votes
Accepted

Is there such a thing as a BELOC (Business Equity Line of Credit), like a HELOC?

A Home Equity Line Of Credit (HELOC) is simply a special type of secured credit. Secured credit is credit provided to you, where the lender has some rights to an associated asset in the event that you ...
user avatar
4 votes

Can a bank make you convert your HELOC into a loan?

In the last housing crisis lenders modified home equity lines of credit. Normally a person is approved to a maximum amount. During the draw period they can borrow up to that maximum amount, they ...
user avatar
4 votes

Does home equity grow with the investment put into the house?

Your best bet is to talk with a banker about your specific plans. One of the causes of the housing crash was an 80/20 loan. There you would get a first for 80% of the value of a home and 20% on a ...
user avatar
  • 74.9k
4 votes

HELOC vs. Parental Student Loans vs. Second Mortgage?

I'd like to propose a 4th option: Let your kid(s) take out their own student loans, and then you can make payments directly to help them pay them down. Some advantages to this method: Similar to ...
user avatar
  • 45.6k

Only top scored, non community-wiki answers of a minimum length are eligible