Debt consolidation is the primary reason people refinance. Debt consolidation is becoming more popular with homeowners due to the increases in minimum payment amounts required by credit card companies. Property has appreciated in value, and many of my debt consolidation clients decide to use the "dead equity" for debt consolidation. Of course, your debt consolidation payment may be tax deductible and your credit card payments are not, you are using "tax advantaged" debt to improve your overallfinancial picture. I offer many debt consolidation products to unlock the equity in your home and reduce your payments. Before you make any decision on a debt consolidation mortgage, a Debt Consolidation Certified Mortgage Planning Specialist can do an analysis so you know you are making the right choice based on your specific circumstances. I now offer a free Debt Consolidation Analysis which can give you the information you need to make an informed decision on your debt consolidation.
In a debt consolidation refinance, add the existing mortgage balance together with the debt to be consolidated to determine your new loan amount. An appraiser determines the value of your property to determine your Loan to Value (LTV). I have programs allowing you to borrow 80, 90, or even 100% of the value of the home in this Debt Consolidation Mortgage. If your ratios are high, I can consolidate your debt at closing eliminating the problem. When we consolidate your debt at closing, the debts are paid out of your proceeds so that debt are not calculated in the debt consolidation mortgageratios. Of course, you may choose a fixed rate, ARM, or even an option arm are as your new loan type. Interest only loan payments are available and can reduce your payments significantly.
A debt consolidation second trust or Home Equity Line of Credit (HELOC) is useful if you have a low rate first mortgage that you want to keep but want to use some of your equity to consolidate your bill payments.
1) A debt consolidation second trust allows up to 100% LTV. Rates increase slightly at LTVs higher than 80% but may still reduce your monthly payments.
2) A 125% home equity loan allows up to 125% of the appraised value of your home. Even if you have little equity, this program allows you to consolidate your debts.
3) We offer several programs for borrowers with non traditional income or asset situations. Visit my No Documentation loans page.
Learn more about debt consolidation refinance closing costs.
I also offer a debt consolidation calculator which should be useful.
I have a page on mortgage documentation requirements
Learn more about improving your credit scores
Learn more about Loan Modification. If you can not refinance, it may be the best way to save your home today.
* I have included a section on the new Cash Flow ARM. A LIBOR or MTA based product which gives you complete flexibility in managing your mortgage.
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Certified Mortgage Planning
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