Mom lost her husb and lost 1/2 her income,need lower monthly pay by combining morga an car, refin? or HELOC?

Question

she has a 1st morg, pays $800 and car payment $800... need to combine these loan and lower her monthy paymens... her income is 1100 from SS... should we refinance or do a HELOC? she has home worth 210k owes 64000 on morg and 30000 on car... please help me help her... not sure whats the best way to go to have her outcome in bills only in the $600 range...thanx

Answer 1

You are not going to be able to refinance $1600 in bills down to $600. She'll need to sell off something. The car or the house.

Answer 2

Sell the car.  Owing that much on a car is insane, sell it for what is owed or as much as she can get for it and then eat the rest, and buy a used car outright.  Not having a car payment will help tremendously, even if she's stuck with paying some out of pocket for a car she no longer owns, she will still be better off.

I wouldn't sell the house. The market sucks right now and she only owes 64K on it.  Does she have someone, a close friend that might be willing to give up their apartment and move in with her?  Someone who can help her with the mortgage and other bills.  

www.daveramsey.com  Seriously, check out his site and listen to his radio show.  It's free and you'll get advice that you can't put a price on.

Answer 3

sounds like she will need to downsize the house and buy a more reasonable car to get in the 600$ range.

Answer 4

rolling a car loan into a mortgage is dangerous - you're basically paying for the car for the life of the mortgage then, but the car will need to be replaced eventually, then she won;t be able to afford to get a new car loan - a HELOC is not a fixed rate loan - her payments could increase if interest if rates head back up - she should sell the house now, pay off the car loan and get a smaller, cheaper place to live - that would solve all the problems - if she only receives 1520 a month - there is no way she would ever be approved for a mortgage that requires 60% of her pay = never going to happen and your idea of 820+400+200 wouldn;t leave any money for food, utilities, real estate taxes, insurance, medical care, etc

Answer 5

this company needs individuals who have recently applied for home refinancing and were turned down or are considering applying for a home refinance.

The company has a new program it is testing and will only available in specified zip codes.

For details: http://nbjmp.com/click/?s=52473&c=95925  

Answer 6

Sell the car.  She will still owe the difference between what she gets for the car and what she owes but the longer she waits, the more she will be "upside down" with the loan.   She can then save some money and buy a used car for cash. Otherwise she will only fall further behind.

Please, please, PLEASE do NOT do a Heloc.  Since it is variable interest, her payment may go way up and she could be in a worse fix than she is in now.