Cash out home equity or keep small mortgage ?

[usumle]

Hi Friend ! I was gifted the house I live in with a smaller mortgage on it. I can potentially do a refi and pull 100k out of the equity (after paying off my 15k of credit cards, yes !) I know it would be more debt ,technically, but I am concerned about future economic hard times/dollar collapse events (as preached by Mills Crenshaw, Harry Dent, Kiyosaki, etc)
I would look to buy other rental properties, buy more silver, and bullets among other useful things. I would not waste it and I am very frugal. I will continue driving my reliable, but old, car until it dies. I know Dave Ramsey would say NO and Pres Hinckley said AVOID DEBT LIKE THE PLAGUE but I am thinking in terms of future economic conditions. (I think housing bubble will pop again relatively soon)

I have one son and pay child support to my ex-wife.
I have a year supply of food, finished college, and have 19k of student loans. I have worked 10 years at a tech company but my job outlook would be mediocre (I think; because of skillset) if layed off.
What would you do in my case ? Any perspectives are appreciated. Thanks !

[brianj]

What would I do? I would follow the counsel of my prophets and avoid unnecessary debt.

I would not waste money on precious metals, trying to make myself wealthy when the dollar collapses. When that happens, it will be during tribulations when we are being prepared for the Second Coming and we will be moving toward having all things in common instead of having more than our neighbors.

If I were in your shoes, I would not even consider a $15,000 home equity loan to pay off credit cards. If you are laid off and can't afford those credit card debts, eventually they will be written off. If you can't afford your mortgage, eventually you will lose your house.

[Matchmaker]

What would I do? I would follow the counsel of my prophets and avoid unnecessary debt.

I would not waste money on precious metals, trying to make myself wealthy when the dollar collapses. When that happens, it will be during tribulations when we are being prepared for the Second Coming and we will be moving toward having all things in common instead of having more than our neighbors.

If I were in your shoes, I would not even consider a $15,000 home equity loan to pay off credit cards. If you are laid off and can't afford those credit card debts, eventually they will be written off. If you can't afford your mortgage, eventually you will lose your house.

I agree with you 100%, because I made the mistake of taking out an expensive home equity loan on my primary residence in 2005 to pay off my credit cards, my second vehicle, and to invest in a rental house. When I was injured and couldn't work for 4 months, I then turned around and ran the credit cards back up and refinanced the second vehicle again. When the economy collapsed a couple of years later and I ran into additional family and employment problems, I lost my house and my second vehicle because of my bad judgement when things were going good.

[Elizabeth]

Clear all debts asap.

[David13]

I agree with you 100%, because I made the mistake of taking out an expensive home equity loan on my primary residence in 2005 to pay off my credit cards, my second vehicle, and to invest in a rental house. When I was injured and couldn't work for 4 months, I then turned around and ran the credit cards back up and refinanced the second vehicle again. When the economy collapsed a couple of years later and I ran into additional family and employment problems, I lost my house and my second vehicle because of my bad judgement when things were going good.

Sorry to hear about your misfortune. I hope you are back on your financial feet now. You are now in a position to give good advice based on personal experience.
dc

[freedomforall]

Try a Credit Counseling Service. They can work with creditors and many times get monthly payments reduced, therefore, you may lose a good credit rating for a time, but you can keep your integrity and still pay off the debts. One exception, however. Don't include your mortgage, even if you were to go bankrupt, it looks much better when your making mortgage payments each month and on time. This can help to restore good credit after a time.
I had to use credit counseling many years ago and it was helpful. I even increased the payments back to normal when the "debt to income" balanced out. In other words, I couldn't see paying less on my payments when my income was sufficient to handle my debts. It worked out well.
When it comes to a BK, it remains on one's FICO report for ten years.

I don't know if this helps or not, and maybe things are different these days. I don't know.

[Matchmaker]

I agree with you 100%, because I made the mistake of taking out an expensive home equity loan on my primary residence in 2005 to pay off my credit cards, my second vehicle, and to invest in a rental house. When I was injured and couldn't work for 4 months, I then turned around and ran the credit cards back up and refinanced the second vehicle again. When the economy collapsed a couple of years later and I ran into additional family and employment problems, I lost my house and my second vehicle because of my bad judgement when things were going good.

Sorry to hear about your misfortune. I hope you are back on your financial feet now. You are now in a position to give good advice based on personal experience.
dc

Thanks, David13. It took 10 years to fight my way out of the mess that I helped create through my bad judgement. My husband and I do have a modest home and car again, but we are doing everything we can to become debt-free as soon as possible. I would never run up credit cards or take out a home equity loan again. I'm even nervous now just having a simple mortgage on my older home, but at least the payment is modest and manageable this time around.

[iWriteStuff]

Hi Friend ! I was gifted the house I live in with a smaller mortgage on it. I can potentially do a refi and pull 100k out of the equity (after paying off my 15k of credit cards, yes !) I know it would be more debt ,technically, but I am concerned about future economic hard times/dollar collapse events (as preached by Mills Crenshaw, Harry Dent, Kiyosaki, etc)
I would look to buy other rental properties, buy more silver, and bullets among other useful things. I would not waste it and I am very frugal. I will continue driving my reliable, but old, car until it dies. I know Dave Ramsey would say NO and Pres Hinckley said AVOID DEBT LIKE THE PLAGUE but I am thinking in terms of future economic conditions. (I think housing bubble will pop again relatively soon)

I have one son and pay child support to my ex-wife.
I have a year supply of food, finished college, and have 19k of student loans. I have worked 10 years at a tech company but my job outlook would be mediocre (I think; because of skillset) if layed off.
What would you do in my case ? Any perspectives are appreciated. Thanks !

Just a heads up but I worked for Kiyosaki once. Run, don't walk, away from his philosophies and evil business practices. As for Mills... he's a radio host and salesman. 'nuff said.

Heed the prophets' counsel. Stay out of debt.

[Vision]

Hi Friend ! I was gifted the house I live in with a smaller mortgage on it. I can potentially do a refi and pull 100k out of the equity (after paying off my 15k of credit cards, yes !) I know it would be more debt ,technically, but I am concerned about future economic hard times/dollar collapse events (as preached by Mills Crenshaw, Harry Dent, Kiyosaki, etc)
I would look to buy other rental properties, buy more silver, and bullets among other useful things. I would not waste it and I am very frugal. I will continue driving my reliable, but old, car until it dies. I know Dave Ramsey would say NO and Pres Hinckley said AVOID DEBT LIKE THE PLAGUE but I am thinking in terms of future economic conditions. (I think housing bubble will pop again relatively soon)

I have one son and pay child support to my ex-wife.
I have a year supply of food, finished college, and have 19k of student loans. I have worked 10 years at a tech company but my job outlook would be mediocre (I think; because of skillset) if layed off.
What would you do in my case ? Any perspectives are appreciated. Thanks !

I would cash out to pay the student loans and credit cards, but no more. Then plow as much money as you could into principal payments on the mortgage and pay the house off asap.

[Matchmaker]

Hi Friend ! I was gifted the house I live in with a smaller mortgage on it. I can potentially do a refi and pull 100k out of the equity (after paying off my 15k of credit cards, yes !) I know it would be more debt ,technically, but I am concerned about future economic hard times/dollar collapse events (as preached by Mills Crenshaw, Harry Dent, Kiyosaki, etc)
I would look to buy other rental properties, buy more silver, and bullets among other useful things. I would not waste it and I am very frugal. I will continue driving my reliable, but old, car until it dies. I know Dave Ramsey would say NO and Pres Hinckley said AVOID DEBT LIKE THE PLAGUE but I am thinking in terms of future economic conditions. (I think housing bubble will pop again relatively soon)

I have one son and pay child support to my ex-wife.
I have a year supply of food, finished college, and have 19k of student loans. I have worked 10 years at a tech company but my job outlook would be mediocre (I think; because of skillset) if layed off.
What would you do in my case ? Any perspectives are appreciated. Thanks !

Just a heads up but I worked for Kiyosaki once. Run, don't walk, away from his philosophies and evil business practices. As for Mills... he's a radio host and salesman. 'nuff said.

Heed the prophets' counsel. Stay out of debt.

I'm reading Kiyosaki's book, Second Chance as we speak. It's a rehash of information given in earlier books, with a little more info on the thoughts of Buckminster Fuller. I see how one can use debt to get rich, but it's a risky way to live your life. After losing my shirt 10 years ago, I don't think I want to gamble too much anymore.

[iWriteStuff]

Hi Friend ! I was gifted the house I live in with a smaller mortgage on it. I can potentially do a refi and pull 100k out of the equity (after paying off my 15k of credit cards, yes !) I know it would be more debt ,technically, but I am concerned about future economic hard times/dollar collapse events (as preached by Mills Crenshaw, Harry Dent, Kiyosaki, etc)
I would look to buy other rental properties, buy more silver, and bullets among other useful things. I would not waste it and I am very frugal. I will continue driving my reliable, but old, car until it dies. I know Dave Ramsey would say NO and Pres Hinckley said AVOID DEBT LIKE THE PLAGUE but I am thinking in terms of future economic conditions. (I think housing bubble will pop again relatively soon)

I have one son and pay child support to my ex-wife.
I have a year supply of food, finished college, and have 19k of student loans. I have worked 10 years at a tech company but my job outlook would be mediocre (I think; because of skillset) if layed off.
What would you do in my case ? Any perspectives are appreciated. Thanks !

Just a heads up but I worked for Kiyosaki once. Run, don't walk, away from his philosophies and evil business practices. As for Mills... he's a radio host and salesman. 'nuff said.

Heed the prophets' counsel. Stay out of debt.

I'm reading Kiyosaki's book, Second Chance as we speak. It's a rehash of information given in earlier books, with a little more info on the thoughts of Buckminster Fuller. I see how one can use debt to get rich, but it's a risky way to live your life. After losing my shirt 10 years ago, I don't think I want to gamble too much anymore.

I can boil down all of Kiyosaki's good advice into two points:

1) The rich buy assets; the poor buy liabilities.
2) Assets put money in your pocket, liabilities take it out.

The rest is garbage. Save yourself some time and read Dave Ramsey or something from Provident Living.

Side note: I don't mean to sound so opinionated on it, but man that left a sour taste in my mouth working there.... The guy should be nominated for High Priest of the Church of Babylon.

[dlbww]

Hi Friend ! I was gifted the house I live in with a smaller mortgage on it. I can potentially do a refi and pull 100k out of the equity (after paying off my 15k of credit cards, yes !) I know it would be more debt ,technically, but I am concerned about future economic hard times/dollar collapse events (as preached by Mills Crenshaw, Harry Dent, Kiyosaki, etc)
I would look to buy other rental properties, buy more silver, and bullets among other useful things. I would not waste it and I am very frugal. I will continue driving my reliable, but old, car until it dies. I know Dave Ramsey would say NO and Pres Hinckley said AVOID DEBT LIKE THE PLAGUE but I am thinking in terms of future economic conditions. (I think housing bubble will pop again relatively soon)

I have one son and pay child support to my ex-wife.
I have a year supply of food, finished college, and have 19k of student loans. I have worked 10 years at a tech company but my job outlook would be mediocre (I think; because of skillset) if layed off.
What would you do in my case ? Any perspectives are appreciated. Thanks !

These are a couple of YouTube interviews done with Nicole Foss. The lady IMO is brilliant. I would listen to her advice then prayerfully consider your options.
https://www.youtube.com/watch?v=ESYAix1QD1E" onclick="window.open(this.href);return false;
https://www.youtube.com/watch?v=AdNvmIf ... xvoOllIoNw" onclick="window.open(this.href);return false;

[freedomforall]

The rich buy assets; the poor buy liabilities.

What category does gold and silver fall? Buy high one month, buy low the next. Buy and keep for months on end, and then when one needs it, the market has dropped.
Does this help the home buyer?

[usumle]

I am grateful for the advice and wisdom you fellow LDS have given. With the passing of months I have a better perspective on my personal financial situation. I was given some financial blessings (in the form of money) from a generous parent. I have a year supply of food , am well armed ,and have paid off some nasty debts as some of you kind strangers have suggested.
I realize now how I have FAILED in the most important aspect of preparation. My Temple attendance/Scripture study have been mediocre, I check off all the To-Dos of my Priesthood duties, and am a consistent member of my Singles Ward. I have been a solid luke-warm Member of the Church.
After some powerful experiences at our Stake conf and focusing on GC talks I realize that the Lord wants us to be prepared to meet him SPIRITUALLY. That is the theme I hear and most importantly, feel. The Sabbath Day. Is it a delight to you ? If you dropped dead tomorrow would you be ready to meet with the Lord ? Those are questions that shake me a bit. I need to improve and repent in those areas. For me, personally, I am not prepared to 'Approach the throne of God with confidence' but feel hope as I change my ways and focus on increasing my faith. There are dark days ahead and I am not spiritually prepared (temporally , Yes) .....

[brianj]

Thanks for the wonderful update.

I also took a big step forward in spirituality last Sunday. After coming across a quote from Russell M Nelson regarding where our attention is focused on Sundays, specifically mentioning football and the Lord, I left the TV turned off all afternoon and didn't watch the Super Bowl. Spending a little time reading, a little time writing, and a little time home teaching I felt tremendously blessed by the experience.

From now on I'm going to make an effort to leave the TV off on Sundays, other than a morning look at the weather. And after last Sunday I am a big step closer to disconnecting cable TV service.

[h_p]

I realize now how I have FAILED in the most important aspect of preparation. My Temple attendance/Scripture study have been mediocre, I check off all the To-Dos of my Priesthood duties, and am a consistent member of my Singles Ward. I have been a solid luke-warm Member of the Church.
After some powerful experiences at our Stake conf and focusing on GC talks I realize that the Lord wants us to be prepared to meet him SPIRITUALLY. That is the theme I hear and most importantly, feel.

If everybody in the church felt this way, we would not be far from Zion. :ymapplause:

[iWriteStuff]

Thanks for the wonderful update.

I also took a big step forward in spirituality last Sunday. After coming across a quote from Russell M Nelson regarding where our attention is focused on Sundays, specifically mentioning football and the Lord, I left the TV turned off all afternoon and didn't watch the Super Bowl. Spending a little time reading, a little time writing, and a little time home teaching I felt tremendously blessed by the experience.

From now on I'm going to make an effort to leave the TV off on Sundays, other than a morning look at the weather. And after last Sunday I am a big step closer to disconnecting cable TV service.

I hope you're a Comcast subscriber ;)

I went to a football party at my EQP's house. I guess we're still a long ways out from Zion. That being said, football season's end makes it much easier for me to keep the Sabbath holy going forward.... now if only the Broncos weren't so darn good next year....

[kennyhs]

I would trudge along with the other payments while working furiously to pay off the mortgage.
Personally I don't think mortgaging your home is ever a good idea, you are so close to owning it, that's a chance in a lifetime, hang on. Credit counseling is a good suggestion.

[harakim]

I would trudge along with the other payments while working furiously to pay off the mortgage.
Personally I don't think mortgaging your home is ever a good idea, you are so close to owning it, that's a chance in a lifetime, hang on. Credit counseling is a good suggestion.

I agree. I would normally say taking a loan out to pay credit cards is not a bad idea. However, if you owe 15k and you pay 4k to refinance, that's a terrible interest rate. Make the minimum payments on the house while you pay down the credit cards. Then when you have your credit cards and student loans paid off, pay off the house monthly or save up to pay off the house all at once. (By then you might have paid off the house anyway...)

A year of food storage and being out of debt is the best place you can be. Then you have the freedom to make decisions. Taking money out to buy silver or stocks is a very risky idea. I worked for financial planners* for years and I don't even contribute to my 401k. Don't take the gamble when you can take the sure thing so easily.

(THIS IS MY BEST PIECE OF ADVICE)
As for your job, do this: go to monster.com, dice.com or your job site of choice. Look at the first 20 jobs in your field in your area and every time you see a skill mentioned, write it down. If it's already written down, put a tally mark by it. Now when you're done you'll see what skills you should have to get another job. Look at information online, join pluralsight, or take a class at college. When you work in IT, an investment in some training will pay off more than stocks or silver ever could.

The dollar is getting stronger which is not a surprise to me. There has been so much debt created and dollars are needed to pay it. The demand is very high. There is a lot of talk about China "dumping the dollar". That is not going to make a difference. With dollar denominated debts in the hundreds of trillions, they can dump all of their dollars in one day with little or no effect. They would miss out on the strengthening dollar and thus be the only ones to lose. It will take an egregiously bad act by the Federal Reserve to kill the dollar. I could give more reasons, but all I'm trying to say is that you should not listen to people on shaky grounds telling you to buy silver as opposed to the prophets. When you have the sure thing - debts paid off, year food storage and a place to live - you will be in a position to take risks by investing in dollars, silver or whatever other medium you want.

*My wife thought this was misleading because it sounds like I was a financial planner. I was not a financial planner but an assistant to financial planners and was around them for most of my life. I am not a financial planner and do not give financial advice.

[Older/wiser?]

I love and have lived by president Hinkleys 1997 talk..Getting out of debt, keeps you out of bondage...my reason for following this counsel ...I never want to be forced to do or follow
A system that is not in harmony with Our Heavenly Fathers plan..how can I help what do I have to offer, if I am a burden or under bondage of debt...you have to sacrifice to get out
Of debt, the plan of bondage is taught to our children, credit offered to youth that are unemployed..I know of a young man in his 20s who owes 40.000. Plus in credit card debt.
I promise you if your desires to follow the counsel of our prophets to get out of debt are sincere to the point of sacrifice , the Lord will open away that will amaze you . My advise
We think we know what is coming, I don't think we have a clue. Work to free yourself like
Your life and those you love depends on it..pay your tithing with gratitude always give a little more.. I make no apologies for my strong statements, I payed a price for what I know.
As for precious metals , you will always have taxes till things fall apart.. I won't take your
Dollar, for a time I may take your Gold, but I will always take your Wheat on any debt I
May Hold...

[Matchmaker]

We have a modest to average sized mortgage on our home ($130,000). However, I don't think we could get it paid off in ten years, even if we were to sacrifice so much that we were able to double our payments every month, and 10 years is still too long to be in debt.

We are thinking we had better sell it and buy a really humble house (maybe $60,000 ish) in a really humble neighborhood somewhere so we could pay it off as soon as possible and be debt-free.

[Robin Hood]

I have a better idea.
Cash in the equity in your home and pay off my mortgage.
In return you can stay here whenever you're in England; so long as you bring Root Beer and Grape Soda.

[kennyhs]

Or cash in the equity in your home, I will do the same, then we meet up in Las Vegas and double our money! This way we can probably pay off
Robin Hood's mortgage and afford Root Beer and Grape Soda!

[Older/wiser?]

Matchmaker 10 years seems long but things unfolding usually takes longer than we think..
The stock market crash of 1929 lasted with the Great depression then WW2 started in 1939 ending
In 1945 history repeats, only this time it will involve the Lords endgame ..your mortgage
Sounds reasonable take it to the Lord the whispering of the spirit might surprise you with
Answers you had not expected.. I store things to barter or trade as that is what I do, I
Can always tell people who survived the Great Depression there drawers are full of plastic
Bread sacks, pieces of foil, rubber bands and string..the B of M covers wars duration times
Manufacturing ceased it was many years..I don't know length of time or duration of that which is coming.. I do no it is coming I and many others feel it.. Extra wheat may pay what
You can't . A talent with extra supplies to trade may be your answer..I do know the Lord
Will bless you with the desires of your heart, if that is to follow the Prophets counsel and
Have storage and get out of debt ..He will provide away.. What I have seen no one would
Believe, so trust Him He will grant your desires...gratitude with tithing will open doors.

[Older/wiser?]

P.S. No matter what anyone's religion or beliefs are ,giving back to the Lord , tithing , donations etc. is not a unique concept only given to LDS.. This principle is eternal