I have a mortgage with a rate of 4.99% which i am allowed to take payment breaks from. Three per year. I have a loan at a rate of 5.2%. Would it be wise to take the payment breaks and use the money to clear my loan? My mortgage is 锟?15k and the loan is 锟?4k
Also, is it worth putting the loan onto a credit card with 0% interest until the 0% interest period is up and then sourcing another 0% interest credit card offer and shifting the balance continually like this until the debt has gone?
Am i better off clearing my loan or mortgage?bridge loan
Refiance your mortgage and incorporate your other loan into it. In other words let the mortgage co. pay off the other loan aand add it to your mortgage. You can also wrap up your auto loan in your mortgage to free up that higher interest rate.
Am i better off clearing my loan or mortgage? loan
id clear the loan and then focus on you house|||the credit card thing is a good idea if you are disciplined and wont use the card and will switch at the end of the term. i would say pay the loan off as the rates on loans are always higher than the mortgage rate.|||WWW.martinlewis.com for good sound advice on most financial aspects. My son used the advice on this website and was able to claim back literally hundreds of pounds in bank charges.
Give it a try good luck!
My advice though would be to clear the loan off.|||A personal loan is unlikely to be at 5.2%. This may be the headline rate (for headline read %26quot;we%26#039;re lying%26quot;). It%26#039;s the APR you need to compare.
Personal loans usually have an unfair method of calculating the early redemption cost. You need to take the hidden redemption penalties into account when deciding is you should shift.
The drawback with consolidating a personal loan into your mortgage is that it will take longer to repay so although the interest rate may be lower, the total cost is higher.
Moving to 0% credit cards can give a saving, provided you know what you are doing. Remember that these are designed to be introductory offers to trap the unwary into paying fees and interest. Read the small print carefully and don%26#039;t use the same credit card for purchases (any payments in come off the 0% chunk and you pay accumulating interest on the purchases). The other problem is that you are committing yourself to being able to find 0% deals in the future. These could dry up if banks have to rethink their charges.|||1. A mortgage payment break means you are simply deferring payment until later and the interest still accrues including interest on the interest you have just accrued by taking a break. It%26#039;s a bit of a con over say 20 years of the lifetime of the mortgage and you will on paper at the end of it paid through the nose for that break. You have to think a little beyond the initial bonus to you . . . the lenders do it for a reason and that%26#039;s to increase their returns over a longer period but suggesting to you that%26#039;s it%26#039;s a gift to you for being such a nice customer.
2. The loan rate you have is OK . . . even if it was 6.2% or up to 7.5%.
3. Credit Cards and 0% over 12 months. There is a fee of usually 2.5% to 3% depending on which card you apply for. In effect that%26#039;s 3% interest you are paying. Fine if you can keep swapping and applying for new cards every 12 months but what happens what if the credit card companies stop promoting 12 months free interest at the end of your period and you can%26#039;t get another card. Then you have to organise a quick loan instead and you may end up paying a higher interest than your first loan.
Finally . . . unless you desperately need cash for some reason, just keep paying back what you owe at the rates you already have.|||Hello,
(ANS) In my opinion I would advise you to pay off your mortgage first before anything else, why? a) its a large monetary amount b) interest rates may go up again c) you will be paying a much larger amount financially in the long term in interest and fee%26#039;s to the lender on a mortgage of 锟?15K than on 锟?4K.
**I was amazed once I cleared my mortgage how much money that freed up each month.
**Once you have cleared your mortgage (if you can) use the money from this to next clear your smaller loan at 5.2% on the 锟?4K. If you are self disciplined I think you will be surprised as to how quickly you could potentially pay this off. Bear in mind you could also think about even increase your repayments per month on the smaller loan once the mortgage is gone?
Ivan|||The loan has a higher apr - assuming that the interest is charged monthly. It may well be that the interest was front loaded and now you are paying the capital of the debt off.
If this is the case you don%26#039;t need to do any balance transfers. - In any case many of these now have fees and penalties hidden in them. .|||do not take payment breaks, those three payments a year
will help you pay off your mortgage faster at 4.99%, great
rate. Credit Cards have much higher interest, just pay whatever extra you can and get it down, switching credit
cards all the time is not good for your credit rating, even
if you close them. Too many inquiries are not good either.
What is the rate on your loan? And can you pay 14K in the
six months or a year at 0%, and what is the rate after the
0%, they can charge as high as the law allows which can
be 28% and that isn%26#039;t getting you ahead.|||Refinancing an adjustable rate mortgage (ARM) is a common practice for borrowers. However, it may not always be the best option. Depending on how high interest rates climb, there are cases when you could end up spending more on converting your mortgage than you would save with a locked in interest rate. Read more from: http://www.squidoo.com/badcredit-mortgag...
