Auto Loan Restructuring
When you're applying for a mortgage, simply put, your income is compared to your debts to determine how much of a mortgage you can qualify for.
Therefore, the larger your vehicle loan payment is, the lower the amount of mortgage available to you.
This is a problem for many people due to the combination of strict mortgage qualification criteria and the increasing cost of homes.
I've partnered with KDK Financial to provide possible solutions.
Below are some examples of things that we can do with your car, truck, boat, or RV loan to help you maximize your mortgage approval amount.
Therefore, the larger your vehicle loan payment is, the lower the amount of mortgage available to you.
This is a problem for many people due to the combination of strict mortgage qualification criteria and the increasing cost of homes.
I've partnered with KDK Financial to provide possible solutions.
Below are some examples of things that we can do with your car, truck, boat, or RV loan to help you maximize your mortgage approval amount.
Refinance To Lower Payment
Depending on the model year of your vehicle, we may be able to stretch out the length of the term of your loan to lower your payment amount.
I know what you're thinking, "then it will take me even longer to pay off my car."
Not necessarily true.
The new car loan would be an open loan which means you can make extra payments against it or even pay the whole loan off without any penalty at anytime.
I know what you're thinking, "then it will take me even longer to pay off my car."
Not necessarily true.
The new car loan would be an open loan which means you can make extra payments against it or even pay the whole loan off without any penalty at anytime.
Refinance To Withdraw Equity
Depending on the model year of your vehicle and how much money is still owing on the current loan, we may be able to replace your existing car loan with a larger loan and you would get the difference in cash.
This scenario may not lower your payment but it could allow you to access the funds necessary to pay off other, higher interest debt, which will then allow you to save money on interest charges and also possibly allow you to qualify for a higher mortgage amount.
This scenario may not lower your payment but it could allow you to access the funds necessary to pay off other, higher interest debt, which will then allow you to save money on interest charges and also possibly allow you to qualify for a higher mortgage amount.
Switch A Vehicle Loan From Your Personal Name To Your Business
When you have a vehicle loan, it shows up on your credit bureau as a debt.
Many business owners finance their work vehicles under their personal name which results in a lower mortgage approval amount.
Depending on the situation, we may be able to swap the vehicle loan into the business name, removing it from the business owner's personal credit bureau and, therefore, allowing them to qualify for a higher mortgage amount.
It's always recommended to discuss this with an accountant before proceeding.
Many business owners finance their work vehicles under their personal name which results in a lower mortgage approval amount.
Depending on the situation, we may be able to swap the vehicle loan into the business name, removing it from the business owner's personal credit bureau and, therefore, allowing them to qualify for a higher mortgage amount.
It's always recommended to discuss this with an accountant before proceeding.
Removing a Cosigner
It's common for parents to cosign on a vehicle loan for their kids...or siblings cosigning for one another.
What many people don't realize is that, by cosigning on a loan, even though the cosigner isn't technically making the payments, they are responsible for the payment on paper.
This means that if someone were to apply for a mortgage, and they had cosigned on a loan for someone, that payment amount must be included in the mortgage approval calculation and therefore reduces the amount of mortgage they will qualify for.
We have the option to remove the cosigner from the vehicle loan as long as the remaining applicant can qualify to carry the loan payments on their own.
By doing this, it will remove the loan payment amount from the debt calculation on the mortgage application and allow them to qualify for a higher mortgage amount.
What many people don't realize is that, by cosigning on a loan, even though the cosigner isn't technically making the payments, they are responsible for the payment on paper.
This means that if someone were to apply for a mortgage, and they had cosigned on a loan for someone, that payment amount must be included in the mortgage approval calculation and therefore reduces the amount of mortgage they will qualify for.
We have the option to remove the cosigner from the vehicle loan as long as the remaining applicant can qualify to carry the loan payments on their own.
By doing this, it will remove the loan payment amount from the debt calculation on the mortgage application and allow them to qualify for a higher mortgage amount.
Repairing Credit
Too much debt can hurt your credit score.
If your credit card and line of credit balances stay consistently near the limit month after month, your credit will hurt because of it.
It's important to pay down your credit cards and lines of credit below 75% of the limit each month (the lower the better of course) so that your credit score doesn't drop.
Sometimes paying down debt is easier said than done of course.
Refinancing your car, truck, boat or RV loan to withdraw cash to pay down debt can make sense.
If your credit card and line of credit balances stay consistently near the limit month after month, your credit will hurt because of it.
It's important to pay down your credit cards and lines of credit below 75% of the limit each month (the lower the better of course) so that your credit score doesn't drop.
Sometimes paying down debt is easier said than done of course.
Refinancing your car, truck, boat or RV loan to withdraw cash to pay down debt can make sense.
Program Details
- KDK Financial has over 20 Lenders to compare offers from to find the best solution
- There are no fees charged
- Access to better rates and longer terms than most Banks/Credit Unions
- Quick turnaround times
Disclaimer
I'm not suggesting that this program is right for everyone.
It's always recommended to speak with your Financial Planner and/or Accountant to help you evaluate the risks and understand the costs associated with any financial decision before you make it.
I do not work for KDK Financial.
If you are interested in any of the solutions discussed above, I will simply coordinate the introduction between you and KDK Financial and they will take over from there.
If you were to decide that the program is right for you and proceed, I would earn a referral fee.
It's always recommended to speak with your Financial Planner and/or Accountant to help you evaluate the risks and understand the costs associated with any financial decision before you make it.
I do not work for KDK Financial.
If you are interested in any of the solutions discussed above, I will simply coordinate the introduction between you and KDK Financial and they will take over from there.
If you were to decide that the program is right for you and proceed, I would earn a referral fee.
