Need some advice...

[Atomic]

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Hey everyone,

Just sold my house, (of course at a loss) and now I have to come up with a 5-figure check at closing. In last year of residency, moving out of state for fellowship.

I've looked into a couple of options, namely personal loan vs. personal line of credit.

I could definitely get a lower % rate on the line of credit, but it has a variable rate. The personal loan would be at a higher, yet fixed rate.

Don't readily know my credit score, but I don't have any reason to think it would be bad.

Does anyone have any thoughts/suggestions, other options? Any thoughts on SunTrust?

Thanks so much!

PS- I echo the sentiments of many when I say DO NOT BUY A HOUSE!!!

 

[docelh]

I'd recommend a peer-to-peer lending site. You can better lower rates than the bank.

http://www.prosper.com

 

[nontrdgsbuiucmd]

Suggest you get your credit, it is free 1x per year at

www.annualcreditreport.com

you can see all items showing up on your credit report, if you want to see the actual score I believe there's a charge for that.

A bank can't quote a very accurate interest rate without knowing roughly what your credit looks like and likely your credit score.

I now hate all credit cards, as I learned a few years ago there is something that many include called a "universal default clause". The deal is that if you become a higher risk, say by having a credit card balance on another card that is near the credit card limit, all credit cards can bump your variable rate up. (This may be changing with the new credit card laws going into effect soon, I hope?).

 

[sam1999]

Hey everyone,

Just sold my house, (of course at a loss) and now I have to come up with a 5-figure check at closing. In last year of residency, moving out of state for fellowship.

I've looked into a couple of options, namely personal loan vs. personal line of credit.

I could definitely get a lower % rate on the line of credit, but it has a variable rate. The personal loan would be at a higher, yet fixed rate.

Don't readily know my credit score, but I don't have any reason to think it would be bad.

Does anyone have any thoughts/suggestions, other options? Any thoughts on SunTrust?

Thanks so much!

PS- I echo the sentiments of many when I say DO NOT BUY A HOUSE!!!

When you say, you have to come up with 5 figure check at closing, I assume it mean to pay off your current mortgage, not buying a new home, correct?

Did you try to ask bank to modify loan? I thought there were few programs to help borrowers who are under water?

You need to look first how long will it take for you pay this loan bank. Variable loan can move up very quickly. How variable loan is calculated? Is this calculated based on prime, which is based on short term fed rates? or it this variable like credit card loans where any negative change on your credit report can increase your rates?

 

[dotdash]

I agree with Sam1999 -- The main issue is how long the debt will take you to pay and what rate the variable loan is tied to. The Fed will keep interbank loan rates low to support the economy at least for this year (so Wells Fargo says), but then, who knows? Other rates will go up differently.

Peer-to-peer loan might be a great option, as you would probably be seen as a good risk.