Debt Consolidation Mortgage Loans Easy Way To Save Money

Debt Consolidation Mortgage Loans Easy Way To Save Money



Debt Consolidation Mortgage Loans: Easy Way to​ Save Money:
Swimming in​ heavy credit card debt sometimes means getting deeper in​ debt simply because of​ high interest rates .​
the​ IRS no longer allows credit card interest as​ a​ deduction .​
If you​ use a​ home equity loan to​ consolidate and pay-off your bills,​ you​ could actually save cash three ways: 1 .​
No interest accrues on​ your credit card balances,​ 2 .​
Your new loan could have a​ lower interest rate,​ lowering your monthly mortgage payment,​ and 3 .​
At the​ end of​ the​ year,​ three IRS allows you​ to​ deduct most if​ not all of​ the​ interest from your mortgage.
One possible glitch in​ the​ system is​ a​ variable rate loan .​
If your home equity loan has a​ higher interest rate,​ the​ potential exists you​ could have more out of​ pocket expenses than you​ had before.
While equity loans usually offer a​ lower interest rate,​ the​ closing costs could be higher .​
And,​ some lenders could charge a​ pre-payment penalty,​ almost forcing you​ to​ stay in​ your home rather than sell if​ a​ potential buyer makes an​ offer.
One way around these restrictions is​ a​ home equity line of​ credit .​
Those usually don’t carry any closing costs,​ and there usually aren’t any pre-payment penalties.
If you​ have extremely good equity built up,​ you​ may want to​ consider cash-out refinancing .​
No matter what your home is​ worth,​ borrow only enough to​ pay off the​ existing mortgage and a​ specified amount you​ need to​ spend .​
For example,​ if​ your home is​ worth $300,​000,​ but you​ only have $100,​000 to​ pay-off .​
Borrow more than the​ existing mortgage,​ but less than the​ homes market value .​
you​ will then have lower payments,​ and probably less restrictions for an​ early pay-off.




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