| Lowering
Your Monthly Payments
Paying off and consolidating your high interest credit
cards and other debts with refinanced funds into one
reduced payment could save you hundreds or thousands
of dollars each month. Using a home equity loan or
refinanced mortgage to reduce your monthly debts can
be a simple way to relieve the stresses associated
with nagging and never ending unmanageable high monthly
payments.
Tax
Savings Can be Substantial
The
interest portion of a home equity loan or refinanced
mortgage may be tax deductible, similar to the deduction
on your first mortgage. Check with your tax accountant
to check on this tax advantage. Credit card interest
in most cases in not taxable and this savings could
be substantial.
Minimal
Equity Required
There is no equity required for a home equity loans
or refinance loans. Financing is available up to 87%
loan to value. Your home is eligible for a loan, even
if the first mortgage is 87%
of the home's value.
Simple
Interest Can be Huge Savings
A home equity loan or refinance mortgage is a fully
amortized, simple interest with a fixed rate. You
will pay less on a simple interest loan, when compared
to credit cards that charge a variable rate
with daily compounded interest. These variable rates
often change when you are totally unaware. It is estimated
that over a long term, you could pay as much as two-three
times more on credit cards with compound interest,
than you would on a home equity type loan or refinance
type loan rate with daily compounded interest.
Easy
Loan Terms
You
have the option of using all or part of your new loan
for debt consolidation, or you can choose to also
use some of the money to make home improvements, or
receive cash for personal use.
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