Question by Mom of Twins: Dad offering a loan for our down payment… what to do with it, or whether to even accept it?
My husband and I recently got pre-approved for a home loan, and the lender figured it with down payment because we qualify for USDA/FHA (?) assistance (my husband knows the specifics).

Anyway, my dad has offered to loan us ,000 to put toward a down payment. It would be a huge help, but I’ve used online mortgage calculators, and maybe I’m doing something wrong, but it seems k down hardly makes a difference (it’s a loan, not a gift, from my dad, so consider I’m paying him 0/mo for a while here).

All we have saved at the moment is the ,000 that we plan to use as earnest money when we make an offer, so k would be a huge help.

The lender did say that for every ,000 you put down, you probably take less than /month off your mortgage payment. So is it even worth taking my dad up on the offer, if we have to pay the mortgage, AND my dad 0/month (for 8 1/2 years)?

Just wanted to know what the advantages are to putting down such a sum of money as opposed to going with 100% financing like we originally planned. Would it help us get approved for a better interest rate or something like that?

I’m also considering taking him up on it so we can clear all of our credit card debt, that way our only “debt” is paying him 0/mo and not throwing away money on interest.

Which would be the better option, in your opinion?

Best answer:

Answer by Keith Truth
Borrow the K and pay off your credit card debt. Best option, for sure. I don’t even have to know what the numbers are to know that the interest the credit cards are charging is more than what your home loan is going to be charging and way more than your dad is charging (since he’s not charging you anything). Pay off the credit cards. Just don’t get excited when you have all that credit available again, you don’t want to max them out again.

Know better? Leave your own answer in the comments!

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Debt Relief Solutions to Avoid

Not all debt relief solutions will help you over the long run. When you’re dealing with debt, you may want to jump at the first solution that comes your way. But some of these solutions could actually hurt you. Here are five that you want to avoid when trying to get out of debt.

Paying Credit Card Minimum Monthly Payments

Paying the minimum on your credit card bill seems like a smart move for getting some debt relief. After all, it means you’re actively paying off your debt, and you’re paying the amount the credit card company requires of you. It also may leave you with extra cash for other things. However, the minimum payments on credit card bills are usually not high enough to pay down your debt in a timely manner. And the longer a balance remains on your card, the longer you are charged interest on that balance, increasing the overall total debt you have to pay. Make an effort to pay more than the minimum, as much as is possible for you, so you can eat into the overall total, accumulate less interest, and pay off your debt faster.

Seeking Debt Relief from Friends or Family

When you’re facing an overwhelming amount of debt, and you have friends or family members that can afford to help you pay for some or all of it, taking a loan from them may sound like a great idea. There’s no interest rate to worry about, unless you agree to set one, and, in theory, you can pay it off at your own pace without having to worry about due dates or defaulting on the loan. But using a friend or a family member as your debt relief solution can lead to strained relationships. Without a legal agreement, you won’t feel the same amount of pressure to pay it back, and the other person will certainly become upset if you don’t pay back your debt.

Paying Off Debt with a High Interest Loan

You just found a loan with a credit limit that covers all of your current debt, so it seems look good financial sense to take out that loan, pay off all of your debt, and have only one payment to take care of. While this is a debt relief solution that can work, you always need to look at the fine print of the loan terms. Make sure you know what the interest rate is and compare it to all of your current credit cards and loans. If it’s a higher interest rate, then you’ve just found a solution that will give you more debt.

Credit Counselors with High Fees

Credit counselors can help you manage your debt, so you don’t want to necessarily rule them out entirely. But you do want to be careful about which counselors you approach. If a credit counselor offers to

help you at a high fee and asks you to pay upfront, be very wary of that counselor. Some credit counselors prey on people who are vulnerable because of their debt situation, and they will take your money without actually helping you. Do your homework before hiring a counselor to deal with your debt.

Bankruptcy as a Debt Solution

Yes, bankruptcy is a viable debt relief solution, but it should really be your last resort. Many financial advisors recommend avoiding it entirely, if at all possible. While it can erase some of your debt, it can’t always relieve your from all of it. You could lose property in the process, such as your car or your home, and it will hurt your credit report for several years.

A solution to your debt problems does exist. Start by understanding your debt, educating yourself about the best ways to reduce it, and being aware of what doesn’t work.

Source: http://www.bills.com/debt-relief-solutions/

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Personal Payday Loan – the Answer to your Urgent Financial Needs

Let’s first define what a Payday loan means. Personal Payday Loan provides financial help to individuals who don’t have enough funds to pay their current bills but will have a paycheck coming in. From the term itself, Personal Payday Loan is designed in such a way that the individual getting the loan will pay it on his next payday. Basically, the payday term varies from 15 days to 20 days though there are some lenders that extend more days than this. Since Personal Payday Loan is said to be an unsecured market fund thus there is no need to keep any collateral with the lender. More often than not, people who easily get attracted to Personal Payday Loan are the one who are not willing to place collateral and who are not qualified for collaterals. Aside from collateral, there are other factors considered for an individual to be qualified for a Personal Payday Loan. Let’s elaborate it here. •Regular employment•Running bank account•Identity proof•Residence proof•Post dated checksSince Personal Payday Loans doesn’t ask for collaterals, the lenders charge a high rate of interest to compensate the risk that they take in for providing this type of loan. Thus, this is also the main reason why Personal Payday Loan are considered an expensive loan. Being an expensive type of loan, Personal payday Loan is often done, when someone is in urgent need of money. When I say urgent, it means that there is no other way or options to get money. It’s like the consumer is left with no choice. Before you decide to get a Personal Payday Loan, you should ask your lender for loan quotes which will enable you to compare the offers from other lenders. Getting the right information you need, will be a great help in making the right decisions, especially so you don’t pay a lot in the short-term of the loan. Also, another point to carefully look for is the hidden charges for your loans because it will make you pay higher interest. As much as possible, get the loan with a low annual percentage rate. Because this will simplify the repayments of loans. And most importantly, consider what your pocket can pay. Don’t get Personal payday Loans that will make your pockets miserable.Whether you have a good or bad credit history, Personal payday loans are available for you. But of course, take into account that good credit history gets the best and fastest offer than those who have bad credit history. The bottom line here is, Personal Payday Loan are the best option for people who have no other choice or no other way to get money in case of emergency or urgent needs. If you need more information about Personal payday loans, online payday loan service, personal payday loan, payday loan uk, online payday loan application, bad credit payday loan, payday loan application, and credit repair advice

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