Home Loan Refinance and Debt Consolidation

 


Visitors: 393

Refinancing your home loan and cashing out part of your equity can help you consolidate your debt with lower rates. By starting with a pay off plan, you can enjoy being debt free in a few years. As with any type of refinancing, check out loan terms before committing to a lender. Shopping lenders will save you money in fees and interest charges. But, don’t be afraid to lock in rates when you do find a great deal.

Create an Eliminate Debt Plan

Before you start shopping to refinance your home loan, create a pay off plan for your debts. Look at current statements on all the accounts you want to pay off. Total your balances to see your debt amount.

Next, check your home equity balance to see if it will cover your short-term debt balance. Don’t forget to include your home’s appreciation. In some housing markets, a home’s value can increase by double digits in a single year.

Check Out Home Loan Terms from Multiple Lenders

With a cash out equity loan, expect to pay slightly higher rates to refinance. You can still find low rates by checking out loan terms from a variety of lenders. Start with a mortgage broker site to get a general idea of rates. Then expand your search to include individual lender sites.

When requesting quotes, just give basic information about your credit. You don’t want a lot of inquiries into your credit report since that will lower your score. One option is to get a free copy of your credit report and submit that information to lenders for a more accurate financing offer.

Apply Online to Lock in a Low Interest Mortgage Rate

Jump on an offer that you think fits your financial situation. Rates change daily, so you don’t want to wait too long before locking in rates. This is also the time to let lenders look at your credit report for a specific mortgage offer.

Don’t forget that you haven’t made any binding commitment by asking for quotes. You have the option to decline a loan offer up to three days after closing.

Once you receive your funds, pay off and close out your short term debt to start saving on interest charges.

See my recommended Home Mortgage Refinance Lenders for the lowest rates online.

Carrie Reeder is the owner of ABC Loan Guide .

(442)

Article Source:


 
Rate this Article: 
 
Debt Consolidation Loan Tips: Paying Off Bills With a Home Equity Loan
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Mortgage Refinance and Debt Consolidation Loan A Way Towards Easier Debt ..

by: Albertin Abelmont (October 10, 2008) 
(Finance/Debt Consolidation)

How to Obtain Mortgage Refinance and Debt Consolidation Loan?

by: Harley Rolland (July 10, 2008) 
(Finance/Mortgage Refinance)

Debt Consolidation Or Home Refinance

by: Sean Hawley (July 07, 2008) 
(Finance/Debt Consolidation)

Mobile Home Refinance Debt Consolidation

by: Gressly Stevens (July 10, 2008) 
(Finance/Mortgage Refinance)

The Decision To Re-Finance - Home, Refinance, Debt Consolidation

by: Michael Benifez (February 27, 2007) 
(Finance)

FHA Mortgage Loan versus Conventional Mortgage Refinance for Debt Consolidation

by: Maria Ny (July 05, 2006) 
(Finance/Debt Consolidation)

Reduce Debt Through Home Loans Via A Debt Consolidation Mortgage Loan

by: Gibran Selman (October 03, 2006) 
(Finance)

Debt Consolidation Home Mortgage Loan Use Your Home to Become Debt Free

by: Apurva Shree (July 09, 2008) 
(Finance/Debt Consolidation)

Low Interest Debt Consolidation Loan - Easy Debt Consolidation Loan Scheme

by: Arvind Singh (September 16, 2008) 
(Finance/Debt Consolidation)

Debt Consolidation Loan Tips: Paying Off Bills With a Home Equity Loan

by: Rita Cook (July 07, 2006) 
(Finance/Debt Consolidation)