In article
<a7f2e2dc-57b8-4cc8-9fee-f9be95779d3d@[EMAIL PROTECTED]
>,
mikki@[EMAIL PROTECTED]
wrote:
> I decided to start saving up for a down payment for a house, which I
> plan to purchase in 6-8 months. Before making this decision, I put a
> chunk of my savings into my two auto loans, in addition to my regular
> payments. For the two auto loans, they list my next payments due
> sometime in 2009.
>
> I was considering not making my regular monthly payments for a few
> months so that I can save that money towards the down payment of the
> house. I am concerned, however, that this may negatively impact my
> credit score because the payments will appear to be erratic and then
> stop suddenly (even though no payments are technically due).
>
> So, should I continue making the monthly payments to appear less
> erratic or save the money for the down payment, so that I can
> hopefully avoid PMI? :)
First, call your car loan company and ask if there is any problem
or negative re****ting if you stop making payments for a few months.
It should be OK if you are in fact paid forward.
Beyond that, I'd need to know what your car loans look like. That
would be the original purchase prices, the original loan values,
when that was, the rates of interest, and current balances. I would
suspect that if you had the cars for a while, and you have now paid
a year in advance, that there shouldn't be too much left to pay.
It might make more financial sense to pay off these loans and
avoid some of the interest. That might set your house deal back
a few months, but it will help you in the net worth column over
the long run.
-john-
--
======================================================================
John A. Weeks III 612-720-2854 john@[EMAIL PROTECTED]
Newave Communications http://www.johnweeks.com
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