Hey guys, long time no see. First off, I would to thank everyone here. I found this place about a year ago and with the knowledge here I was able to correct my scores from about 590 to the 700 range. Alot was learned and I was able to get a great mortgage and all that good stuff. Thanks yall. Now...I still have alot of CC debt and are paying them just fine but not making enough progress as far was wiping them out...which is my goal. heres the deal...I owe about $226k on our home and it would probably appraise between $270-300k based on current sales on my street. would I be better off getting a Home equity loan or a heloc to just pay off all of our CC's and other debts that way? Can someonbe here shed some light on the topic and please offer any advice/comments/suggestions. The good, the bad, the ugly? Currently my scores are around 650, but I have ZERO negative info at all three, the only lowering factors are age of accounts and high balances. No lates, collections or anything like that. Thanks Again!
As long as your debt to income ratios are in line with the HEL or HELOC you should have no problem. There are a couple things to keep in mind. 1. Home Equity Loans are a little more costly than a HELOC. 2. You may not be able to get a HELOC if debt ratios are too high. 3. You shouldn't have any problems getting the HE Loan. But, bank may require direct payment of all current debts and then give you the balance. 4. I know this is obvious but I've been there done that. Don't run the cards up again after you get the loan.
