Debt Consolidation Mortgage Refinancing Loan
Improve Your Finances with a Debt Consolidation Mortgage Refinancing Loan
If your high-interest rate credit card debts are costing you a fortune, you could save money, reduce your taxes, and pay off your debts faster with a debt consolidation mortgage-refinancing loan. You have two options for a debt consolidation loan: mortgage refinance or home equity.
Mortgage Refinance Is Best for Big Debts
If you have credit card debt totaling more than $50,000 dollars or other high interest debts, then a mortgage refinance loan is the way to go. You’ll need to qualify for a new loan, but most people are offered a low rate if they’ve built equity in their homes and have a credit score over 700.
With a mortgage refinance loan, you can set a term anywhere from 10-30 years and the interest is tax deductible. It’s recommended for larger loans because the longer time frame stretches out the payments to an affordable level. Depending on the amount of equity you have, you could also borrow extra money to make home improvements like installing a new roof or remodeling an antiquated kitchen or bathroom.
Home Equity Loans Are Best for Small Debts
If you have smaller debts in the $10-20,000 range, then a home equity loan is a better choice. Your rate will be slightly higher than a fixed rate mortgage loan, but you’ll have little or no closing costs and receive the money much faster. You can also set payment terms for just a few years rather than 25-30.
There are several advantages to getting a home equity loan instead of other debt consolidation loans:
* Your interest rate will be lower than you can get with a credit card
* You won’t pay any balance transfer fees
* Your interest is tax deductible.
Borrow Safely to Protect Your Home
Whether you get a home equity or mortgage refinance loan, make sure you only borrow an amount you can afford to repay. If you can’t make your payments, you could lose your home. When deciding how much to borrow, keep in mind that you should never borrow more than 80% of the current value of your home so you have a cash cushion in case home prices decline and you need to sell.
You should only borrow funds against your home if the interest rate on the debt is higher than the interest rate on your home equity loan and isn’t tax deductible. It wouldn’t be worthwhile to get a 7% home equity loan to pay off a student loan fixed at 4%.
If you borrow smartly, a debt consolidation mortgage refinance loan or home equity loan can save you hundreds of dollars in interest and reduce your taxes. If you own a home, consider this solution for medium to large debts.
For more articles on Debt Consolidation Mortgage Refinancing Loans, visit: http://www.bills.com/debt-consolidation-mortgage-refinancing-loan/
By: Justin narin
Article Directory: http://www.articledashboard.com
Subscribe to:
Post Comments (Atom)
1 comment:
Hi, (Also, interested for article exchange)
I am the webmaster of some mortgage/debt/credit/insurance, real estate related sites, and my sites are doing fine in major search engines. While searching in Google I have found your website and as we both are in the similar field, I would like to exchange links with your site.
I have some good content pages in my websites and will give you some healthy links from my websites.
So if you are interested then kindly send me your link details. I will activate your links within hours.
If you are not the concerned person, then kindly forward this mail to the webmaster concerned.
Waiting for your reply.
Regards,
Dorothy Parker
Dorothy786@gmail.com
N.B: -- This message contains personal, privileged, and confidential information and is intended only for the individual named. If you are not the named addressee, you are NOTIFIED not to disseminate, distribute, re-transmit, copy, or utilize this e-mail, and contents herein. Please notify the sender immediately by return email if you have received this e-mail by mistake. You are FURTHER NOTIFIED to delete this e-mail and any attachments, as well as any copies made thereof, from your computer system(s). The sender does not accept liability for any errors or omissions in the contents of this message and unless explicitly stated otherwise, does not intend to give legal advice or enter in an attorney-client relationship.
Post a Comment