2nd Mortgages

[milach]

Are these as great as they sound? We were thinking about refinancing our house so we can consolidate all our CC's and cars into one loan to have more money in our pocket each month. I called Ditech.com and the guy said we don't have enough equity in our house, but a 2nd mortgage would work for us. Based on the figures he gave me, we would be saving upwards of $600.00 a month, plus claim the interest on our taxes- and it would give us an extra 10 Grand to put away (to finish off the upstairs of our house, or put it into savings incase dh lost his job). It sounds really great to me, but are these too good to be true?

If you have refinanced or done a 2nd mortgage- is there a good company you recommend? TIA!!

Laura

[Kimmomo3]

If you are going to stop using the cc's it might be a good idea.
I wouldn't put the car on the house, cuz you will then be paying for the car for 30 years instead of 5 (or whatever)

And if you are not diciplined to save and not use the cc's you will rack up the debt again and you will have the cc's and the 2nd morgage.
AND if you can't pay your cc's now all they can do is take you to court and tell you to pay (which they don't do often) if you put it on your house and can't pay they can take the house.

My

[2cutekids]

I am not sure, but I think the only interest that you can deduct on your taxes is the interest from the portion that you use on home improvements.