Debt Consolidation
A debt consolidation mortgage is a type of refinance designed to use a lower cost loan secured against real estate you own to replace higher cost debt such as credit cards, car payments and other higher interest unsecured debt.
Benefits
- Consolidate many easy to forget payments into a single smaller monthly payment.
- interest is tax deductible
- Eliminate high interest payments
- Replace a higher interest 2nd mortgage with a lower interest 1st mortgage
Refinance Options
Fixed rate, adjustable rate and home equity lines of credit (HELOC) are available for debt consolidation. Most do not have pre-payment penalties meaning, you can pay off ahead of time as extra funds become available.
When a debt consolidation mortgage refinances an existing 1st mortgage, rates and payments will usually be lower than if done as a 2nd mortgage. When a HELOC is used to consolidate debt, the rate will be variable and lower than that of the debt it is replacing but, will usually be higher than that of a 1st mortgage.
Collateral
Equity in your home, condo, manufactured home or vacant land may be used as collateral for a debt consolidation loan. A home or condo is the easiest to use as collateral anywhere in Florida. While we can use manufactured homes and vacant land as collateral, we may not be able to use them in all areas of Florida.
As always, if you have questions about debt consolidation, use our online contact or call us. We'd be happy to answer your questions.