Refinance for Debt Consolidation

Debt consolidation is a form of cash out refinancing that involves taking out one loan to pay off other loans. The process can secure a lower overall interest rate to your entire debt load and provide the convenience of paying only one loan. The new loan would consist of refinancing your current mortgage and any other debt you want to pay off.   Credit cards and other unsecured debt usually carry higher interest rates than a mortgage.  The monthly savings you have can be used  to save money or to pay extra payments on the loan. The other advantage is that if you consolidate your loans soon enough, you can avoid - or at least minimize - the dent to your credit rating from having numerous creditors.

With the high interest rates credit card companies charge, falling behind on only a few payments can lead to a seemingly insuperable debt load. This can become very awkward within no time and you may start losing your sleep as well. To get rid of the burden, you may end up planning to sell some stuff and to take a part-time job, but there are other ways to ease out the situation as well.

Home Equity Loans for Debt Consolidation

Home equity is the difference between what your property is worth and what you owe on it. If your home is currently worth $300,000, for example, and your mortgage balance is $200,000, then you have $100,000 of equity. In this case you can use a home equity loan to pay off your credit card debt. The interest on home equity loans is typically lower than credit card rates and is usually tax deductible. This can be a very efficient repayment method if you can manage it properly. Because, there is this great danger of paying off your various loans and then continuing your bad financial habits and racking up more debt on your newly balance-free credit cards.

If you are under credit card debt and you wish to see if you qualify for a debt consolidation home mortgage equity loan or refinancing, contact us now. We'll assist you in every possible way to find the best possible solution for your unique situation.

Contact our mortgage advisors. We are just a call away, call us at 610-770-6900 or click the button below to apply online.

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