 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
How to proceed with loans?
My husband and I are in a disagreement about how to proceed with our finances. He needs a vehicle very soon and we will need to purchase a new home within a year (hopefully). I will provide some hypothetical numbers:
We have $20,000. Currently, we are debt free minus approximately $1,100 on a credit card I am aggressively paying off. Husband wants to buy a used vehicle with cash, approximately $8,000 I believe he should take a loan so we can pay it fairly quickly, while avoiding the immediate loss of 8k. The side benefit would be a boost in his credit score (his credit is quite low, mine is over 712 so I would likely co-sign) He is against this, believing that if we have an outstanding auto loan we will not qualify for a home loan. My concern is that eliminating our savings by 40% leaves us vulnerable as well as diminishes our funds to pay for a down payment, etc. involved with buying a home. Note: Our home budget is aprox. 80-90k (quite attainable in our area) Our current home has virtually zero value but sits on 1 acre, which is worth approx. 15k I know this is a very general scenario but my husband at this point is unwilling to consult a professional. I'd really appreciate some opinions/feedback. |
||||
|
||||
|
Definitely don't buy it in cash. I would recommend taking out a loan for the car for as long as you can before you decide to buy a home. It is important that a month before you buy the home, you FINISH paying off the car loan. Make sure this lasts more than 6 months so that it actually increases your credit score. After that you can definitely start looking for a home, with a little better credit, with the car that you need, and your saving can even increase in this time frame, if possible.
|
||||
|
||||
|
I am a cash person, sorry, but you pay cash, and then the money you would have paid in payments each month you put back in the bank, all of a sudden you made 10 percent or more interest on the money if you pay yourself the interest you would have paid a loan company.
You money is setting make less than 1 percent so its best use is o pay off any debt, so why create a debt you don't have to. Then pay yourself this loan back, so you will have all of that money plus he interest before you go to buy a home. Next what type of home do you have, Why does it have no value ? |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
Hi there! Wasn't sure where to post this. I'm 22, and I have 3 student loans, one of them is with Direct Loan, the US Dept. of Ed, and 2 more with Wells Fargo. All 3 of these loans were past due 100 to 145 days. I recently had them all deferred due to economic hardship (they are NOT in default)....
Hi, just tore up a leaking second floor toilet (house was built in 1958). Everything rusted and floor damage noted. I understand that I have to replace area of rot. The existing toilet plumbing is some sort of material that is shapable, grey/tan in color and was obviously leaking terribly. The...
First let me apologize because this will be a little long. I am putting this to text to keep from contacting her. I will begin with how it began. I asked her out in Feb. of this year and we almost instantly became attached at the hip. We both have children, she had a divorce and I am a...
So there's this girl. I work with her. Recently we have been talking through the office email and off line during breaks. We really seem to get along and I think I'm beginning to really like her. The problem is I am not sure how she feels about me. She is married but her husband works out of...
View more questions Search
|
