| Our debt
consolidation home loan programs can
be tailored to your specific needs.
Below is some information to help get
you started. To get started immediately
click
here for our on-line application.
Debts that go unpaid can damage
your credit and make it difficult to
obtain a home loan. In some cases it
is recommended that before obtaining
a home loan the borrower consolidate
or pay of his debt. Debt consolidation
will lower your monthly payments while
simultaneously increasing your credit
rating. Paying off debt, without the
assistance of consolidation, prior to
applying for a home loan, is another
good way to improve your chances of
being approved for a home loan. Refinancing
your first mortgage or obtaining a new
home equity loan may also be a financially
practical way to relieve the burden
of high monthly payments.
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Mortgage lenders offer several different
terms for second mortgages. The repayment
terms for your second mortgage will
depend on your individual circumstances
and will depend on the amount of time
you will require prior to repayment.
It is often difficult for borrowers
to repay a large loan in a short period
of time. For this reason it is best
to choose a second mortgage on your
home that does not require repayment
after only couple of years.
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Often, the interest portion
of a debt consolidation loan or second
mortgage may be tax deductible. The
total deductions depend on your individual
tax bracket and state tax laws. Check
with your tax advisor for more details.
The tax savings can be substantial when
compared to your non-deductible monthly
bills.
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The differences in the type
of interest you pay on your home loan
will impact the price of your monthly
payments. With simple interest, interest
is calculated once and is fixed. This
can create savings for the home owner
because with compound interest, the
interest amount is added to the principle
continually and then begins to incur
additional interest charges. Credit
cards work by charging compound interest
and this is why the balances can easily
get out of control and be difficult
to pay off.
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Many mortgage lenders give
borrowers the option of using all or
part of your new home loan for debt
consolidation. If you prefer, you can
choose to use some of the money to build
an addition onto your home or make other
home improvements. This money can also
be received as cash for personal use.
Most programs that are offered have
terms anywhere from 5 to 30 years. The
minimum loan amount that is offered
in most circumstances is $15,000.
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When considering a debt consolidation
loan or a second mortgage, homeowners
should know that in many cases no equity
is required. Many mortgage lenders offer
no equity home loans to help you, the
homeowner, consolidate your bills and
lower your monthly payments. The funds
generated through this type of no equity
mortgage can be used for any purpose.
These loans are available to qualified
borrowers at up to 125% of a home's
current price.
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