Consolidation & Credit Card Debt

If you have credit card bills, personal loans, car loans, or student loans in addition to a home mortgage, chances are that you’re paying more than you have to every month—and interest rates may be killing you financially.

By a debt consolidation home loan you can make one manageable monthly payment and lower your combined interest rate to a fraction of those high-interest-rate credit cards. By paying off other debts with a mortgage loan, you may be able to take an income tax deduction for the interest paid on that mortgage loan.

Two mortgages also can be consolidated; if you have both a first and a second mortgage on your home, you may wish to consolidate those loans into one convenient monthly payment.

You’ve already invested in your home once; maybe it’s time to review your investment. With a refinance loan, you generally can reduce your monthly payments—this can leave you with more disposable income to save for your future, allow you to pay off existing debt, or give you a lump sum of cash to invest back into your home or another high yielding security.

Lower Your Interest Rate Your home also can pay for its own improvements. Take out a second mortgage and you’ll have the cash required to paint, buy new furniture, remodel your kitchen, or even build an addition. use the cash to buy a new car—unlike an auto loan, the interest you pay on the home equity loan may be tax-deductible

What is a second mortgage?
A second mortgage is a loan secured by your home, other than the primary loan that was borrowed to pay for your home. A second mortgage, also known as a home equity loan, is often used to convert home equity into cash for all of the aforementioned purposes.