Maybe
you've indulged in impulse shopping one too many times or actually found
yourself in an emergency where paying with a credit card was the only option.
Either way, if you're a homeowner who is struggling to pay those monthly bills,
debt consolidation could make sense for you.
Homeowners who have equity in their homes but whose debt load
has become difficult to manage are good candidates for debt consolidation
loans. A debt consolidation loan allows you to pay off high-interest consumer
debt, such as credit cards, by centralizing those balances with one lender in
one loan. This means that you can merge a home mortgage payment, a car payment,
a student loan payment and credit card debt into a single larger loan. One way
to consolidate is through a home equity loan.
What is a Home Equity
Loan?
Equity is the difference between the value of your home and the
money you still owe on your mortgage. Sometimes referred to as a second
mortgage, a home equity loan allows you to borrow against the equity you have
built up in your property. With a home equity loan, your home is used as
collateral for your debt consolidation loan. This type of debt consolidation
allows you to benefit from mortgage interest rates that are typically lower
than rates for other types of debt.
Another benefit of a home equity loan is that in most cases,
interest paid is fully tax deductible.
To learn more about Uses for a Consolidation of Loan, Costs of Consolidation Loan and the Disadvantages of Consolidation READ MORE HERE....
For more information on selling your home, check out our Seller Resources Page. To get your home market value click here and add your zip code. Emailed directly to you within minutes. Contact the Hoffman Home Team when your ready to sell your home.
The Hoffman Home Team Blog ~ Heidi Hoffman ~ 303-949-9770 ~ Keller Williams Realty
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