Financial question for you banker types

[Thelt]

If I have a large amount of credit card debt and I am considering getting a second mortgage to pay it off will it be of much benefit to me if the rate on the second mortgage is not any cheaper than the credit card rate? I know I will get a tax benefit for it but I can not think of anything else that makes it better other than the rate might be fixed on a second mortgage while it is not on the credit card.

I have pretty good credit other than high credit card balances. I would think I could get a rate better than ten to eleven percent. I am not trying to do a 125 loan. I am looking at ending up with a 100% loan to value after the second mortgage.

[sadic1]

Between this and being upside down on your car, you should seriously consider spending less money, or if you prescribe to the VP School of Economics, spend more and make a lot more.

What was the question? Oh yeah, I think the tax writeoff if the only perk, but that could be a lot depending on how much the principle is.

[slydevl]

If I have a large amount of credit card debt and I am considering getting a second mortgage to pay it off will it be of much benefit to me if the rate on the second mortgage is not any cheaper than the credit card rate? I know I will get a tax benefit for it but I can not think of anything else that makes it better other than the rate might be fixed on a second mortgage while it is not on the credit card.

I have pretty good credit other than high credit card balances. I would think I could get a rate better than ten to eleven percent. I am not trying to do a 125 loan. I am looking at ending up with a 100% loan to value after the second mortgage.
Tax advantage is huge. Payments spread over 30 years so are smaller. If you are paying PMI you can try to pay off some of your first mortgage with the second to stop that.

I would only do this if you know you won't run up your credit cards again though.

[Angel]

You may only claim the second mortgage as a tax writeoff if the expenditure qualifies which I believe is limited to college education expenses and money spent on your primary or secondary residence.

Thus, if your credit card debt is from purchases other than to remodel, renovate or repair your home or for college tuition then you can't claim it by simply transferring the debt to a second mortgage.

[barry49s]

I would only do this if you know you won't run up your credit cards again though.

:trophy:

[slydevl]

You may only claim the second mortgage as a tax writeoff if the expenditure qualifies which I believe is limited to college education expenses and money spent on your primary or secondary residence.

Thus, if your credit card debt is from purchases other than to remodel, renovate or repair your home or for college tuition then you can't claim it by simply transferring the debt to a second mortgage.
Horseshit. You are an idiot.

[Guest]

Horseshit. You are an idiot.
yes...I believe he is......interest payments on a home are always tax deductable....I own a couple.....I claim 60K a year in interest alone....all my loans are under 6% and most are fixed.

[slydevl]

yes...I believe he is......interest payments on a home are always tax deductable....I own a couple.....I claim 60K a year in interest alone....all my loans are under 6% and most are fixed.Agree. If you transfer your debt into your home then your fucking debt is in your home and it is tax deductible.

[Cattrax]

You may only claim the second mortgage as a tax writeoff if the expenditure qualifies which I believe is limited to college education expenses and money spent on your primary or secondary residence.

Thus, if your credit card debt is from purchases other than to remodel, renovate or repair your home or for college tuition then you can't claim it by simply transferring the debt to a second mortgage.
Sorry guys, I don't think Angel is wrong on this, 2nd mortgages have to meet a certain criteria to be deductible. Angel has done a pretty good job at defining.

This is not policed very well so always remember the home equity is for remodeling, renovating and repairing.

I hate agreeing with Angel.

[mathmajors]

Horseshit. You are an idiot.
:woohoo:

[kshead]

This is not policed very well so always remember the home equity is for remodeling, renovating and repairing.

Don't forget propping up the economy.

[Cattrax]

Don't forget propping up the economy.
Works for me.

[Thelt]

Between this and being upside down on your car, you should seriously consider spending less money, or if you prescribe to the VP School of Economics, spend more and make a lot more.

What was the question? Oh yeah, I think the tax writeoff if the only perk, but that could be a lot depending on how much the principle is.

I did not have money problems when I was single.....