Trade in your high interest credit card debt with a debt consolidation
loan secured by your mortgage. With your homes equity as security, you
qualify for some of the lowest rates. And you can select terms that
best fit your budget needs. So you can either extend terms for a lower
payment or shorten the length to get out of debt sooner.
Take Stock Of Your Debt And Equity
Before you start a cash-out refi, total up your short term debt and
compare it to your equity. Remember too that your equity is based on your
homes assessed value, not what you paid for it. List out interest
rates on your cards and current mortgage in order to determine potential
savings with a refi.
With the numbers in front of you, find out what type of debt
consolidation loan would be best for your situation. With an especially low rate
mortgage, getting a second mortgage is a good choice. The same is true
if you plan to move soon. Otherwise, look into refinance your entire
mortgage to lock in even lower rates.
Start Shopping Mortgage Loans
Mortgage lenders package loans with a variety of terms and rates. You
can opt for a low interest adjustable rate mortgage, or choose the
security of fixed rates. You may also select terms that will affect your
monthly payments and interest charges.
Once you have an idea of the loan you want, start shopping for a lender
with a low APR. APR includes both interest rates and closing costs,
which are often the hidden costs of loans. Second mortgages and lines of
credit often have lower closing costs than traditional refi loans.
It is important to compare several lenders before settling on one.
Using the internet will put you in contact with lenders from across the
nation. With so many more choices, you are sure to find a great deal by
comparing loan quotes.
Completing The Loan Process
For a fast turnaround, complete the loan application online. Within
days, your final paperwork will be mailed to you for your signature. Funds
are soon dispersed and you can pay off your accounts.
View our recommended companies for
Debt Consolidation Services or view all of our Recommended Debt Consolidation Companies Online.