thinking that i jumped the gun on the MS3

[AWmustang]

To answer your original question: I've used the following calculator many times for exploring the what-ifs of extra payments.

http://www.bankrate.com/brm/popcalc2.asp

 

[evilmonkeyMSP]

nice site.

 

[djthom]

www . bankrate . com/brm/calsystem2/calculators/debtpaydown/default . aspx

take out the spaces...

this is a good site to see how long it will take to pay debts off...

you can do as many debts as you want...then it will show you the pay down schedule!

it also lets you play with over paying and shows how much it helps...


good luck!

 

[daonly1around]

www . bankrate . com/brm/calsystem2/calculators/debtpaydown/default . aspx

take out the spaces...

this is a good site to see how long it will take to pay debts off...

you can do as many debts as you want...then it will show you the pay down schedule!

it also lets you play with over paying and shows how much it helps...


good luck!

thanks guys

 

[AAMguy]

good luck getting a loan for a house being that much upside down and in debt. Hopefully your credit cards are payed down. I would sell the protege and at least put that towards the ms3, or sell the ms3 and take a nice bath

 

[daonly1around]

ok remember this guys, i have a goal of owning an house in 1-2 years, thats why i'm tossing around the idea of selling the ms3, my question is, sell now, or keep it in excellent condition and sell a year or two from now?

not to try to get out of debt, i'm not worried about that, as much as i've paid off in the past three years i'm actually doing really good, sure i think i pulled the gun too fast on the speed, but i can afford it, i just don't think the bank would believe i can afford that and a house. not now, maybe in two years, paying two years extra money each money, and two years worth of tax returns going towards the loan as well

 

[mazdaspeedster3]

Oh this is a good one. No, you can not roll your car payment and debt into a mortgage any more. two years ago yes, now NOT A CHANCE. The odds of you getting a mortgage at all with 1k in disposable income (should be in savings) is slim to none regardless of your credit in this market. If you are making a 550 a month payment on a 28k loan tells me you have a 5 year loan and around a 4-6% interest rate. Not that bad really considering you put 0 down. If you have a 6 year loan you are really screwed and are getting killed with interest. You would do better to refinance the car loan to a 5 year or less, make the bigger payment along with your 1k a month disposable income and get your loan down to 19k in 10 months or less and sell the car without losing more than you have. NOw, if you save that 1k a month for 3 months and put that down on the refinance you would only have a 26500 loan for 5 years at a much better rate and get your payment in the low 400's giving you 1100 disposable income (assuming disposable means you have a savings account with 5k or more in it) you will be able to get a FHA loan for around 110k no problem.

 

[daonly1around]

Oh this is a good one. No, you can not roll your car payment and debt into a mortgage any more. two years ago yes, now NOT A CHANCE. The odds of you getting a mortgage at all with 1k in disposable income (should be in savings) is slim to none regardless of your credit in this market. If you are making a 550 a month payment on a 28k loan tells me you have a 5 year loan and around a 4-6% interest rate. Not that bad really considering you put 0 down. If you have a 6 year loan you are really screwed and are getting killed with interest. You would do better to refinance the car loan to a 5 year or less, make the bigger payment along with your 1k a month disposable income and get your loan down to 19k in 10 months or less and sell the car without losing more than you have. NOw, if you save that 1k a month for 3 months and put that down on the refinance you would only have a 26500 loan for 5 years at a much better rate and get your payment in the low 400's giving you 1100 disposable income (assuming disposable means you have a savings account with 5k or more in it) you will be able to get a FHA loan for around 110k no problem.

five years and remember i financed almost 30

 

[daonly1around]

i think i've answered my own question just talking it it, what I'll do is sell the protege, refinance once i get tax returns back next year should and keep paying an extra 1-200 a month and should knock it down, and hopefully will have about 15K or less in a year or so. and not even think about rolling a car into the mortgage

 

[mazdaspeedster3]

Good option. However, do what you can to speed that process up and have money to put down on the refinance of your car (10% suggested) so you get a better rate. You can knock down a point for every 1000 you put down on an auto refinance. And dont use capitalone!

 

[Kurt07]

This is why I waited a year after buying my house to buy a new car.

 

[parkerfe]

Now i LOVE the car, and its the car i've wanted since the protege became the three. But i'm at the point in my life that i want to buy my own house. I still own my protege and would consider selling the ms3 even though i know i would take a huge hit, but the thing is i put 0 down and also rolled about 4K of my CC debt into the loan, so my loan is still at like 28K.

So i'm asking, if i pay my payment of 547 each month, and an extra 100 or so each month, what could i be looking at say a year from now that i would have left for pay off? Groos that i would pay off would be about 7K and put me at 21K owed plus what ever interest i haven't paid off.

Is their any chance that a bank would roll my car into a house payment if i owed like 20K? it would save me about 400 a month if it was part of my house payment, or would i better off selling the car a year from now?

While buying a house is a very wise move in general, if your cash flow is so tight that a few hundred dollars a month makes a difference, then you need to save a little more first IMHO. With a house comes numerous addition expenses such as insurance, taxes, repairs, maintenance, ect... that will come at the most unexpected time.

 

[coololddude]

its a different market for loans now. its not like a couple of years ago when all you had to do was show that you had a pulse. you best be debt free before you go hunting for a loan. you will get the best rates with the highest credit score (750-850) and ZERO debt. dont use the same mentality buying a house that you used buying a car!! if you do, we will hear you crying about being foreclosed in a few years! just a REALITY CHECK!!!

 

[daonly1around]

its a different market for loans now. its not like a couple of years ago when all you had to do was show that you had a pulse. you best be debt free before you go hunting for a loan. you will get the best rates with the highest credit score (750-850) and ZERO debt. dont use the same mentality buying a house that you used buying a car!! if you do, we will hear you crying about being foreclosed in a few years! just a REALITY CHECK!!!

i'm not crying, get a reality check yourself i was just asking for some advice, i know i'm not gonna roll my car into a house loan, figured that out after like the first two or three responses. I never said i had to sell my car, i was considering selling and taking a hit on the car now so i could buy a house, i'd a rather have a house than a new car, and have the house make up money when it appreciates to make up for the money i lost selling the car now, but i know now i'm gonna wait about two years and probably have my car paid off in full. the only debt i have now is my car and my credit score is in that range 750+ i got my reality check about three years ago with some personal problems

EDIT: next time you respond to post make sure you read a little bit of the thread before you respond to see what the OP has said about his own post...

 

[ericrapp]

maybe you could keep both cars. take the extra money and put into savings towards down payment on the house. Live on the cheap for awhile and pay down the new Mazda until the debt is below 10000. So you are not paying so much in interest. But I would not want The debt of the car weighing on my mind when purchasing a house. You might find that you will wish you had the second car if you sell it. Things happen. a little patience until you knock down some car debt. even at a low interest rate the financing charges 30g add up. Good luck. I hope you can attain your goals by waiting a little longer for the house.

 

[daonly1around]

maybe you could keep both cars. take the extra money and put into savings towards down payment on the house. Live on the cheap for awhile and pay down the new Mazda until the debt is below 10000. So you are not paying so much in interest. But I would not want The debt of the car weighing on my mind when purchasing a house. You might find that you will wish you had the second car if you sell it. Things happen. a little patience until you knock down some car debt. even at a low interest rate the financing charges 30g add up. Good luck. I hope you can attain your goals by waiting a little longer for the house.

yeah, thats why i haven't sold the protege yet

 

[15min5k]

I agree with with the prospect of waiting about 2yrs while paying extra on the car loan before you get into a house payment. This is actually what I'm doing

 

[nextcar]

I agree with with the prospect of waiting about 2yrs while paying extra on the car loan before you get into a house payment. This is actually what I'm doing

i agree. many economists are predicting that home prices will continue to drop for at least 1 to 2 more years, and after that happens, home price may stay low for several more years.

there is no hurry to buy homes now. wait at least 2 years to save some money. you'll probably also need at least a 10% down payment.

 

[ecniemann]

My 2 cents:

1. Keep the Protege, if it is tip-top mechanically. It is paid off.

2. Sell the MS3. You can get close to what you paid (~1500-2000 less) if you find the right buyer. It will only go down in price with time, losing you more money.

3. Pay off that cc debt and car loan ASAP.

4. When this is all done....then start looking for a house while you are saving every penny. Do not buy anything that you do not absolutely need. i am talking only food, essential clothes, rent, phone, gas, etc. Once you have a little extra saved, splurge on the fun stuff (ie. MS3's, electronics, etc.)

 

[dokx]

I'm not going to judge this, one way or the other, because I can see it from both sides. You have to do what makes you happy, while still being responsible. Personally, I had a cheap-paid-off car, bought my current house, then got the MS3. BUT...with my last house, I had someone refinance my car beforehand so it didn't show up on my credit report. I ended up making almost $20k a year later when I sold the house, and had the car i wanted (and couldn't technically afford) the entire time. Basically, a text-book example of the wrong way to things.

There is no universally "right way to do it"...it depends on the person.

Just my 2...