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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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question about mortgage
Ok I should be starting the mortgage process within the next few weeks.
here is my question.
I have a car with about 19,000 remaining to be paid off. (its 587 a month). I have the 19,000 to pay off the car with money to spare. Is it better to go for a mortgage with that loan paid off and less the 19,000 in the bank or vice versa. I dont want the payment anymore
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Posted 1/22/10 10:28 AM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: question about mortgage
How much can you put down on a house after paying this car off?
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| Posted 1/22/10 10:47 AM |
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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: question about mortgage
I'd keep paying the car off, it's not like you are going to get a discount to pay it off early-the interest is already in the payment.
So keep the money in your account and gain interest in your pocket.
If they see that you have the money to pay it off, are on time with your payments, you shouldn't have an issue getting a mortgage.
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| Posted 1/22/10 10:48 AM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: question about mortgage
we asked the bank which was better, for a CC and they said assets (cash) in the bank look better then the liability (any debt)
So keep the cash in the bank.
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| Posted 1/22/10 10:50 AM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: question about mortgage
my concern is with my student loans that my debt to income ratio will be to high.
After paying this off I will still be able to show 50,000 in the bank.
i have 90,000 set aside for down payment and closing costs as well
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| Posted 1/22/10 10:52 AM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: question about mortgage
Posted by jillee03
my concern is with my student loans that my debt to income ratio will be to high.
After paying this off I will still be able to show 50,000 in the bank.
i have 90,000 set aside for down payment and closing costs as well
are you doing FHA or traditional?
if your doing 20% down 50,000 is good for a 250K house. not including closing costs.
if you are willling to spend less then that or you are going FHA you might want to pay it off then. FHA doesn't like a lot of debt.
Are you working with a bank yet? you could call a mortgage person or a bank and ask these questions. they will help you.
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| Posted 1/22/10 11:00 AM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: question about mortgage
the sale price is 329
im doing a traditional loan
i have 70 for down payment
18 set aside for closing.
then that would leave me with 70 left in the bank. I want to use 19 of that to pay off car
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| Posted 1/22/10 11:04 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: question about mortgage
Posted by neener1211
I'd keep paying the car off, it's not like you are going to get a discount to pay it off early-the interest is already in the payment.
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yes you do...you don't pay the interest if you pay if off early
the payoff is less then the total of the remaining payments
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| Posted 1/22/10 11:33 AM |
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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: question about mortgage
Posted by Beth
Posted by neener1211
I'd keep paying the car off, it's not like you are going to get a discount to pay it off early-the interest is already in the payment.
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yes you do...you don't pay the interest if you pay if off early
the payoff is less then the total of the remaining payments
 hmmmm....I thought it wasn't. Thanks!
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| Posted 1/22/10 11:51 AM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: question about mortgage
so consensus is I should pay it off?
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| Posted 1/22/10 11:55 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: question about mortgage
Posted by jillee03
so consensus is I should pay it off?
I would talk to the mortgage banker first
before you do anything
with out knowing all your info no one can tell you that for sure
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| Posted 1/22/10 12:18 PM |
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SnickNNick
In our new house!!
Member since 8/08 2119 total posts
Name:
Nicole
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Re: question about mortgage
Posted by Beth
Posted by jillee03
so consensus is I should pay it off?
I would talk to the mortgage banker first
before you do anything
with out knowing all your info no one can tell you that for sure
ITA--best idea. But in general (not with regards to mortgage) if the interest rate you're paying on it is a lot higher than the interest you are making on your savings, it may make sense to just pay it off (if you can do so without really depleting your savings, which seems to be the case).
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| Posted 1/22/10 12:26 PM |
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mandasue
LIF Adolescent
Member since 3/09 772 total posts
Name:
Amanda
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Re: question about mortgage
Posted by Beth
Posted by jillee03
so consensus is I should pay it off?
I would talk to the mortgage banker first
before you do anything
with out knowing all your info no one can tell you that for sure
i agree!!!
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| Posted 1/22/10 1:13 PM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
Name:
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Re: question about mortgage
personally I would be putting 100K down on the house, don't worry about the car payment. The sooner you pay off the house the sooner you can retire but of course check with your mortgage broker!
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| Posted 1/22/10 1:31 PM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: question about mortgage
If you would have that much cash after 20%down and closing costs I would pay off the car loan, that is a pretty big payment every month and could impact your debt to income
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| Posted 1/22/10 4:22 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: question about mortgage
I think in your situation I would first see if you can attempt to put down 20%.
If paying down your car will not allow you to put 20% down, then I would hold onto the car payment for now.
Putting less than 20% down could mean you will be paying PMI, and the amount of money you would pay in PMI (and at least for the first few years) would easily eclipse what you would pay in automobile interest.
If you can put 20% down, pay down the car, and still have 3-6 months emergency fund, then pay the car down.
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| Posted 1/22/10 4:43 PM |
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scalpbee
LIF Zygote
Member since 12/09 44 total posts
Name:
Abi
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Re: question about mortgage
Have you thought about weighing the option of putting down more than 20% and opting for keeping the car note and just doubling up on the monthly payments. Since we don't know what the future holds I would personally choose the option that gave me the lowest mortgage payment over the course of the loan, even if it meant putting more down and holding on to the car note for an extra few months.
BTW way I believe you can go through pre-approval so you are able to weigh your financial options. There is so many various ways we can give advice on but neither of us truly knows your financial situation. Besides car note and the obvious student loan debt many of us have incurred what other debts do you have. Too much personal info need to give you the BEST ADVICE...Good luck!!!!
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| Posted 1/22/10 8:08 PM |
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DaniJude
You're My Home <3
Member since 11/06 14815 total posts
Name:
Danielle
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Re: question about mortgage
Posted by mandasue
Posted by Beth
Posted by jillee03
so consensus is I should pay it off?
I would talk to the mortgage banker first
before you do anything
with out knowing all your info no one can tell you that for sure
i agree!!!
Agreed! Best of luck!
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| Posted 1/22/10 9:41 PM |
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