Debt consolidation mortgage loans can help you lower your
interest rates and monthly payments. With reduced rates, you can
also pay off your debt sooner. However, reducing your equity
could subject you to private mortgage rates. You may also end up
spending more on interest payments by delaying payments.
Saving With Mortgage Interest Rates
Mortgage interest rates are much lower than credit card or
unsecured loan rates. Consolidating your debt with a refinanced
mortgage or home equity will reduce your payments simply by
having a lower rate. By paying the same monthly payments, you
can pay off your debt rapidly.
Your interest is also tax deductible with a mortgage or home
equity loan, where your credit card interest isn't. Student loan
interest is also tax deductible and shouldn't be consolidated
for a higher rate.
Reducing Your Payments
Consolidating with a loan also allows you to reduce your
payments by picking longer terms. So if your income is reduced
or you have other financial obligations, lengthening your
payments can give you some breathing room in your budget.
Paying More In Fees And Interest
The cost of a mortgage can be more than what you are paying in
interest charges if you have a small amount of debt. To
refinance a mortgage, origination fees can add up to thousands.
Other types of home equity loans can cost hundreds or nothing to
open. You may also have to pay private mortgage insurance
premiums if don't leave 20% of your equity in tack.
Delaying payments can also add up interest payments, even with a
lower rate. For example, a loan amount of $10,000 will cost
$11,587.10 in interest for a 30 year loan at 6%. That same
amount will cost $5,896.71 for a 5 year loan at 20%, which is
what most credit card payment plans are like.
Deciding To Pay Down Debt
Consolidating your high interest credit can help pay off your
debt by providing structured payments. You can also lower your
interest rates, making repayment easier. However, be aware of
the costs and shop around for low rates and fees. To get the
most out of a consolidated loan, choose short terms to avoid
making large interest payments.
New Home Construction Loans 101
When you are ready to build your first home or that dream home
that you have been wanting for so long you will probably wind up
needing help with the financial part of the building process.
The funding for your new home is available through new...read more
Home Equity Loan Refinance - Important Facts
Refinance refers to applying for a secured loan intended to
replace an existing loan secured by the same assets.You must
speak with a finacial advisor before you decide to refinance.
Refinancing the loan you had taken at higher rates is a...read more
How to Qualify for a Home Mortgage Loan
Are you considering applying for a mortgage loan to purchase
your first home? If so, you should read the following tips below
that will make the process easier!
If You Have a Good Credit History It Is Easier To Qualify For