Would you do this?

[dolphin]

Would you get an equity loan with a private lender? After reviewing our credit/payment history, all we are eligible for is a private lender loan at 12 to 13% interest plus there may be points. This would be for bill consolidation.

I just don't know what to do.........

[Valerie in WA]

It depends on what your bills are (both amounts and interest rates), how much your first mortgage is, how much your home is worth, and how much trouble you are having making your current payments. Oh, and the amount and payment period of the equity loan.

If you feel comfortable sharing those numbers, I'll give my opinion.

I know you've been struggling. The question is whether this will help you in the long term, or if it will endanger your ownership of your home.

[dolphin]

Valarie, I'm still working on my list of debts. That was one thing that the lender required. She wants all of my debts listed so that I can "clean" it up.

I should have the list ready by the end of the weekend, God willing, and I'll know more where we stand but we're looking at $66,000 mortgage, appraisal around $225,000. Debts around $20,000. Not much but when you so far behind and borrowing from paycheck places just for emergencies it's aweful!

[Kelly0411]

Is this a fixed rate mortgage and is there a prepayment penalty?

[Valerie in WA]

With that much equity in your home, I would seriously consider doing it.

[pammy]

If you're moving one debt to another and getting a better rate by doing it this way, I say go for it. You've certainly got enough equity and then some. It would be the same as surfing a cc balance to another to get a better rate, wouldn't it?

[Katybird]

I say if it will make your bills more managable then I think you should go for it. I know you have had tremendous stress regarding your finances and if this will help then it is definately worth it.