Mortgage Question

zsha

Hi all, so we have our house that we built from savings, and we got a loan from family & small loans as we went from bank, credit union etc. We've been paying them back and all is good. However we were just discussing the other night is it actually possible to get a mortgage on a house that we live in, to 1 pay back the loans and 2 finish off the house on the inside......That way it would be one repayment figure rather than all the little bits and the house would get finish, as it is hard to save and pay everything too, so if we had a mortgage on it then its all combined into one.....
Can anybody tell me if banks do that??? Thanks

Samuel T. Cogley

Yes they would, but you'd want a very compelling reason to turn unsecured debt into secured debt. If you're managing and the interest rates are not crippling I'd be very reluctant to bring my home into play.

zsha

Yeah I see what you are saying. We are managing, but to finish off the house it is hard to try and save to get the money together whilst paying everything so we were saying to each other could it be an option to take a small mortgage on the house, pay off anybody we owe with it and also get the rest of the house finished, the mortgage payment would probably work out cheaper per mth than all we are paying individually, if you get what I mean