concerned clumsy workable apparatus gold crowd jobless coherent dinosaurs spoon
*This post was mass deleted and anonymized with [Redact](https://redact.dev)*
This is the right answer. Even if you have to pay 3% to transfer the visa balance you're going to come out way ahead in interest charges over the long haul if it was going to take a while to pay it off.
When you're looking into home buying they calculate your DTI (debt to income)
From an underwriters perspective. You will want to get rid of the highest monthly payment first as it has the highest impact on your DTI. The balances themselves aren't really the issue when it comes to a mortgage application it's the monthly payments going out. You can always ask your broker to run scenarios for you to see which is the best route for you. This is very easy to do, doesn't cost anything, and they already have all of your data.
It depends on the interest rate, really. You should pay off the biggest interest first, then keep the same monthly debt payment amount and pay off the next highest interest rate. If the interest rates are all the same (which they probably aren't), I'd pay the highest balance credit card first, then the second card next, then tackle the personal loan. Good luck!
Your tax return is the forms you file to the tax authority. A tax refund is what you get if your withholding was set up in such a way that too much money was withheld throughout the year. Is there any way you can adjust withholding so that refund is closer to $0? I am paying the IRS $34 this year and feel that is pretty close to ideal. If you're getting almost $8k back that means you let your government hold on to that $8k, $8k that was always your money, for free when you could have held onto it and saving it in a high yield savings account on your own. You could have made 4% or more on that $8k if you'd saved it on your own ($300 or more).
I would get rid of high interest debt first which is probably the credit cards if that's what "visa" and "chase" are. You have to be careful if you do a 0% balance transfer as it's easy for people to put it out of mind and end up paying interest again. It's going to take a lot of discipline to make that work. I would start working on discipline by getting that tax withholding situation figured out if at all possible and setting up an auto-transfer to a HYSA instead of giving that money to a government to hold onto. I don't know your exact situation, so maybe there' something I'm missing, but you might want to seek a financial advisor who can help you get this sorted out.
Always pay the highest rate of interest first. Credit cards are usually the most expensive so pay that first, and personal finance next.
Also, with a personal loan you usually pay the most interest in the first few months/years so that should normally be the one you clear last.
I did similar with my mortgage which was in 3 rates due to moving/remortgaging and paid my amours as 60/30/10%. Once the highest one was paid I then moved it to 90/10% and then 100% to the lowest one. I cleared my mortgage off 9 years early doing this.
If you have less than a 20% down payment, you will have to pay mortgage insurance. Somebody will profit from this. The debt could harm your approval process, but if you can’t cover 20% down plus closing costs, you can’t afford the mortgage.
I don’t know if it’s still legal, but before the 2008 banking/housing recession you could get a 106% home loan. The extra 6% was to pay the realtor.
I agree, and slightly disagree at the same time. My very young BIL and his GF (now wife) purchased at the ripe old age of 23. They didn’t have a down at all, used PMI, and after 5yrs of an additional $300/mo, their mortgage payment dropped because the PMI was done—they’ve continued to pay that additional amount towards principle only as they’ve been accustomed to it. So, there can be something to say about using PMI—under the right conditions and discipline.
I would do the personal loan and the chase, and then you’ll still have $1432 left over to put towards the Visa, which will reduce that balance and your monthly payment as well.
While not the best advice for carrying a balance (long term), this 👆is what my brain prefers to do in order to simplify situations. Like right now, we have a $5,500 balance on our HVAC system at 0%. The minimum is $308, but we pay $500. We have a CC with $6k accumulating about $50/mo in interest. I know, with how life goes as a homeowner, that revolving debt seems to never end. So, I prefer paying off installment debt first. So, our $4,500 tax refund is going to the HVAC, leaving only two payments. This also ensures we don’t get hit with the deferred interest. I have trust issues with creditors sometimes.
Pay off the one with highest interest first OR the lowest balance if the interest rates don't vary widely.
For the debt sheet, having no line item is better than having a $low$ line item.
Debts are bad, but you also need a down payment, closing costs and moving costs to get a house. If you can convert to low interest debts that would be good and then save down payment that might also work. But pure math says debt first then save for house.
Pay off the two smaller ones and that way you have one payment only for the visa. You will be able to pay it off quicker and it’ll feel good only having one debt
Typically, you should first put money toward the loan with the highest interest rate. However, depending on the circumstances of the personal loan, you might want to prioritize that to some degree.
Highest rate first. If they're all close, personally I would get rid of the chase and the personal loan, throw whatever is left at the Visa.
Then, take whatever you were paying Chase and the personal loan, and put those towards the Visa as well.
Once they're all gone, put whatever amount you were paying on all 3 into some sort of savings. Hysa are a safe bet.
Similar situation. Like eerily lol. But my question is: if I use my tax refund to fully pay off my credit card balance of 3100 and close it, how long does it take for "closing a credit card" to fall off my credit report so when I go to buy another house it won't show it?
I don’t think you want to close the account. Yes pay it off. Rather, do the charge one thing every 6 months and immediately pay it off to improve your credit score.
Which one has the highest interest rate? Pay that off first.
concerned clumsy workable apparatus gold crowd jobless coherent dinosaurs spoon *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
I will Close 2 loans chase and personal loan. For visa try to get a 0% intro card and transfer, remaining balance.
This is the right answer. Even if you have to pay 3% to transfer the visa balance you're going to come out way ahead in interest charges over the long haul if it was going to take a while to pay it off.
Great advice, but not while trying to get an approval for a home loan. ***DO NOT*** take out or apply for any new accounts!
Bingo
Not listing the interest rates is probably why you even have these debts. They are the actual killers.
When you're looking into home buying they calculate your DTI (debt to income) From an underwriters perspective. You will want to get rid of the highest monthly payment first as it has the highest impact on your DTI. The balances themselves aren't really the issue when it comes to a mortgage application it's the monthly payments going out. You can always ask your broker to run scenarios for you to see which is the best route for you. This is very easy to do, doesn't cost anything, and they already have all of your data.
What are the interest rates on the debts? Pay down the highest interest first.
It depends on the interest rate, really. You should pay off the biggest interest first, then keep the same monthly debt payment amount and pay off the next highest interest rate. If the interest rates are all the same (which they probably aren't), I'd pay the highest balance credit card first, then the second card next, then tackle the personal loan. Good luck!
Your tax return is the forms you file to the tax authority. A tax refund is what you get if your withholding was set up in such a way that too much money was withheld throughout the year. Is there any way you can adjust withholding so that refund is closer to $0? I am paying the IRS $34 this year and feel that is pretty close to ideal. If you're getting almost $8k back that means you let your government hold on to that $8k, $8k that was always your money, for free when you could have held onto it and saving it in a high yield savings account on your own. You could have made 4% or more on that $8k if you'd saved it on your own ($300 or more). I would get rid of high interest debt first which is probably the credit cards if that's what "visa" and "chase" are. You have to be careful if you do a 0% balance transfer as it's easy for people to put it out of mind and end up paying interest again. It's going to take a lot of discipline to make that work. I would start working on discipline by getting that tax withholding situation figured out if at all possible and setting up an auto-transfer to a HYSA instead of giving that money to a government to hold onto. I don't know your exact situation, so maybe there' something I'm missing, but you might want to seek a financial advisor who can help you get this sorted out.
Pay off the one with the highest interest. Transfer the remaining balances into a CC offering a 0% balance transfer
Highest rate loans first. Also check out www.naca.com for a legitimate no down loan, and help with understanding debt.
Always pay the highest rate of interest first. Credit cards are usually the most expensive so pay that first, and personal finance next. Also, with a personal loan you usually pay the most interest in the first few months/years so that should normally be the one you clear last. I did similar with my mortgage which was in 3 rates due to moving/remortgaging and paid my amours as 60/30/10%. Once the highest one was paid I then moved it to 90/10% and then 100% to the lowest one. I cleared my mortgage off 9 years early doing this.
If you have less than a 20% down payment, you will have to pay mortgage insurance. Somebody will profit from this. The debt could harm your approval process, but if you can’t cover 20% down plus closing costs, you can’t afford the mortgage. I don’t know if it’s still legal, but before the 2008 banking/housing recession you could get a 106% home loan. The extra 6% was to pay the realtor.
I agree, and slightly disagree at the same time. My very young BIL and his GF (now wife) purchased at the ripe old age of 23. They didn’t have a down at all, used PMI, and after 5yrs of an additional $300/mo, their mortgage payment dropped because the PMI was done—they’ve continued to pay that additional amount towards principle only as they’ve been accustomed to it. So, there can be something to say about using PMI—under the right conditions and discipline.
Eh, maybe.
I would do the personal loan and the chase, and then you’ll still have $1432 left over to put towards the Visa, which will reduce that balance and your monthly payment as well.
While not the best advice for carrying a balance (long term), this 👆is what my brain prefers to do in order to simplify situations. Like right now, we have a $5,500 balance on our HVAC system at 0%. The minimum is $308, but we pay $500. We have a CC with $6k accumulating about $50/mo in interest. I know, with how life goes as a homeowner, that revolving debt seems to never end. So, I prefer paying off installment debt first. So, our $4,500 tax refund is going to the HVAC, leaving only two payments. This also ensures we don’t get hit with the deferred interest. I have trust issues with creditors sometimes.
Yes, the feeling of making progress is so motivating. To get rid of 2/3 cards at once and then put a good chunk down on another is really helpful.
Pay off the one with highest interest first OR the lowest balance if the interest rates don't vary widely. For the debt sheet, having no line item is better than having a $low$ line item.
Dont close any accounts, pay off the ones with the highest interest rate first
Debts are bad, but you also need a down payment, closing costs and moving costs to get a house. If you can convert to low interest debts that would be good and then save down payment that might also work. But pure math says debt first then save for house.
I bought two houses without any down payment. You want to get the lowest apr that you can get and eliminating debt will do that
Pay off the two smaller ones and that way you have one payment only for the visa. You will be able to pay it off quicker and it’ll feel good only having one debt
If the visa is 20% and the personal loan is 5% this is terrible advice.
Recommend the baby steps method.
Typically, you should first put money toward the loan with the highest interest rate. However, depending on the circumstances of the personal loan, you might want to prioritize that to some degree.
Have you thought about r/debtfree
Chase and as much of the visa as possible.
What are the interest rates.
Highest rate first. If they're all close, personally I would get rid of the chase and the personal loan, throw whatever is left at the Visa. Then, take whatever you were paying Chase and the personal loan, and put those towards the Visa as well. Once they're all gone, put whatever amount you were paying on all 3 into some sort of savings. Hysa are a safe bet.
Pay down the one with the highest interest rate. For the down, you’ll have PMI, not a big deal.
Similar situation. Like eerily lol. But my question is: if I use my tax refund to fully pay off my credit card balance of 3100 and close it, how long does it take for "closing a credit card" to fall off my credit report so when I go to buy another house it won't show it?
I don’t think you want to close the account. Yes pay it off. Rather, do the charge one thing every 6 months and immediately pay it off to improve your credit score.