Finacial question?

Question

i have a good savings my own house and two cars. Im shopping for a seconded home to live in and rent the one I have now, thats my situation. My question is before I talk to lenders or due credit check should I pay off one of my new cars that i just got leaving me with a smaller savings and smaller down payment, will it help me with getting a lower interist rate by having less debt.

Answer 1

Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.I came across this company on NBC News Special Edition.Check it out here:

http://dwarfurl.com/8c1a1

Answer 2

Your creditworthiness is determined by many different factors. One significant factor is the ratio between your income and your monthly obligations - that's called your debt-to-income ratio.

If you pay off a significant debt before applying for new debt, that always lowers the ratio between your income and your monthly obligations.

Most mortgage lenders consider two separate debt-to-income ratios - your income-to-house payments and your income-to-total monthly expenses.

Ideally, the total of your housing cost (both your existing home and the new home you hope to buy), PLUS your minimum credit card payments PLUS any loan payments that you have PLUS certain other regular and routine expenses should not exceed 36% of your gross monthly income.

Your car loans are part of that calculation - if you pay off one or more of them, you will decrease the ratio of income to monthly debt service, and increase the chances that you will meet at least this lending criteria.

I hope that helped. Good luck!