You may want to substaintially pay down or pay off the auto loan then work toward the same on the HELOC---whichever has the highest interest rate. Continue to sock away as much as possible toward your home purchase budget. A lot can happen in your life within 18 months. Being free of debt and those payments when times get tough should be a part of your overall plan as well. Good to luck to you!
score will go higher.Pay off your equity loan and save more money for your down payment in one year.
At the same time, you could rent your house get that income and pay your new mortage in a new house.
That's if you already paid off your house.
Car loan is not much as your mortgage. So to pay two mortgage at the same time will be a big
obligation to deal with. Im willing to help you for wahtever questions you still need to answer.
Thanks and best regards,
So I'd recommend you speak with a loan officer to see if you can qualify both ways, because if you can, then it's your call what you'd like to do with the funds. If you can't qualify both ways, you'll be given guidance on what needs to happen in order for to you to qualify at least one of the ways.
I would not worry about paying off your home equity loan since that could be satisfied and paid-in-full by the sale of your home. If you plan on retaining your present home as a rental, the home equity payment would be offset by rental income. Having an auto loan does not reflect negatively on you as a borrower candidate as long as your total debt ratios do not exceed maximums.
Based upon today's interest rate environment and real estate markets, I would encourage you to give strong consideration now. Saving additional money for a down payment in 18 months would be beneficial in terms of monthly payment, but it would have very little, if any, bearing on interest rate especially in the case of FHA.
If you'd like to talk right now, call me at my office 716-685-9696.
Licensed Mortgage Professional
R & R Funding, Inc.