Underwater loan
I'm really red faced to even ask but if anyone has any ideas I'd be happy to hear. Like many seniors we bought a new Class A when retiring. Things were good back in 2001and we were full timing. Put a ...
Forum Discussion
OK here are some example numbers. No actual data, just pulled off the sky hook.
MH value $35,000
Debt 85,000
Current payment $1381 ($85,000, 8 years, 12% rate)
Sell MH, put $15,000 cash, $15,000 on credit card, $20,000 Home equity line, $35,000 cash from sale = $85,000 paid.
Remaining debt $35,000.
CC minimum payment 4% of balance $600 per month ($15,500 debt including advance fee)
HELOC 10 year payment $242 at 8% rate.
Apply the $1381 + $100 (storage & insurance) minimum to the HELOC and the balance $1249 per month to the credit card.
CC is paid in 14 months
HELOC is paid in 30 months total
A decent banker could do the same calculation with your own numbers.
MH value $35,000
Debt 85,000
Current payment $1381 ($85,000, 8 years, 12% rate)
Sell MH, put $15,000 cash, $15,000 on credit card, $20,000 Home equity line, $35,000 cash from sale = $85,000 paid.
Remaining debt $35,000.
CC minimum payment 4% of balance $600 per month ($15,500 debt including advance fee)
HELOC 10 year payment $242 at 8% rate.
Apply the $1381 + $100 (storage & insurance) minimum to the HELOC and the balance $1249 per month to the credit card.
CC is paid in 14 months
HELOC is paid in 30 months total
A decent banker could do the same calculation with your own numbers.
