- BUY A
- SOUTH STATE
Debt consolidation is a wonderful way to reduce not only your total monthly bill payments but also the interest rate that you are paying on your debts. Even with bad credit, the interest rate on a debt consolidation loan can be lower than what you’re probably paying on credit cards and other monthly consumer bills. By using the equity in your home to consolidate your bills, the interest on the loan might even be tax deductible.
The key to successful bill consolidation depends on not adding additional debt to your monthly payments before paying down what you currently owe. Here are some ways Mortgage Options can help you consolidate your debt:
1.Home Equity Loan – By taking out a home equity loan you are not initiating another mortgage. You are simply accessing the equity you have built up in your home to do a debt consolidation, or to pay for other financial obligations. You are getting access to your available equity without refinancing your existing mortgage. You will get one lump sum of money that you will pay off on a monthly payment plan.
This is a great way to perform debt consolidation because you are paying off high interest consumer debt with a one-time low interest home equity loan. The net result is sometimes a significant monthly savings.
2.Home Equity Line of Credit – A home equity line of credit gives you a lot of flexibility compared to other types of equity loans. With a line of credit you have ongoing access to your available equity without needing to re-apply each time you want to access the funds. You can draw a portion of the line of credit, pay it off, and then draw more without the bother of a new loan application.
The line of credit is a wonderful way to perform debt consolidation, again because you are paying off high interest debt with a lower interest home equity line of credit. The danger with this type of loan is that you have repeated access to the line of credit as you pay it down.
3.Mortgage Refinance – This is another way to access the equity in your home. In this instance you are doing a complete mortgage refinance. You are paying off the old mortgage with funds from the new mortgage. The idea is that the combination of today’s lower interest rates combined with the equity you have built up in your home will allow you to pay off the first mortgage and walk away with what might be a significant amount of money that you can use to perform debt consolidation or to meet other financial needs.
These are some ways in which you can take advantage of the equity in your home to pay off higher interest bills or other debt consolidation needs.
To find out more about debt consolidation, call Mortgage Options today: (803) 732-5787 or Toll Free at (866) 456-5511 .