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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
times 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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