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To begin with, yes, it is possible to get hard money loans. But as you know this is very costly source of money and should be taken as the last option.
Of course. Understood
Last option considering our age?
So, at the first place, if possible, I would suggest you to find out if deferment or cancellation of your student debt is possible.
Yes... because of your age, it can lead to serious debt trap.
So as said above,at the first place, if possible, I would suggest you to find out if deferment or cancellation of your student debt is possible.
Let me address this one by one
My husband will not want to defer them...they are our kids' loans but we promised to pay them. Paying them is not the issue, we can afford them.
Oh ... I see
OK... that's a different point then.
Yes... you can ho for it then.
So far as timing goes, rates can harden up later. So will be the housing market in the years to come.
We can afford a mortgage. Husband still makes decent income despite the short sale. I'm asking if it makes better sense to get back in the game at this age and time of our lives NOW despite the high interest OR if we stick to our orig plan to significantly pay down the st.lns for the next year...literally til 1/2014, or as close as possible, and THEN get back in the game when he's 55?
So, if you are getting a good modest condo, this can be the right time as housing as almost bottomed out and you may find good appreciation in next years to come
Yes... if you can wait until he is 55, it would be more beneficial because, the hard money interest that you will pay would be more costly
We just started thinking maybe it's worth looking at condo's now, even at the higher int rate hard money loan...we are paying just $600 / mo to live @ my parents, and jumpstart our getting a paid for property in time for retirement. Even if we paid 10% for 2-3 years we could re-fi when our credit is repaired and even if the interest rates are at 5% due to inflation in 3 years, we'll have paid down our mortgage during that time fram.
I would suggest to pay down student debt in one year. Entering the game will be almost same even if you start late by a year, but still avoid hard loans
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Ok, that's what I was wanting a 2nd opinion on. It's best to pay down student loans for 1 year (leaving us with roughly $50K owed), and THEN get back in the game. Thanks for your time. Any other thoughts?
No... because, just one year will not have significant change in interest rates. But are loans can be avoided and interest saved.
BUT...hey, if we wait a year we STILL can't get a conventional loan though...but are you thinking it would be a shorter amount of time having a hard money loan? (2 yrs vs 3 yrs til we can re-fi?)
yes.... that's right.
Alright then. Does it make any sense to rent the rest of our lives? We doubt it but just wondering.
Our age is what's throwing this. Husband doesn't want to rent. BUT, does it make sense to rent til we can get a conventional loan or to get hard money for 2 years and at least getting a place paid for in 10 years?
Yes.. I understand, that is the reason I was little averse with hard money. Yes, it would be worth as ultimately you are owing your condo.
Before going for hard money, you have to absolutely sure that paying it back will not cause you hardship
Hard to understand typed answers. SO, yes you say get hard money loan for 2 years after paying down student loans for one year, as it would then get us paying down on a property, beginning in 2014? We can afford the payments. Short sale doesn't always mean you don't have any money. :)
Am I clear Madam?
Did you get that last one?
We'd only keep hard money loan til we could get a conventional loan in a re-fi, when our credit is good again. We have no other debt, never did.
Your husband is correct ONLY IF paying down hard money loans should not cause hardship... only then you can take this option.
Yep...we're all clear then. Thanks for your helps! Greatly appreciated.