By getting a debt consolidation loan secured by your mortgage you can actually consolidate your high interest credit card debt. When you have equity in your home as security, you can get the lowest rates of interest. You are even able to select terms that fit your budget needs. So you can shorten the payment period to quickly clear the debt or extend the period to pay less.
Take stock of your debts and equity
Gather up all your short-term debts and compare that amount to your balance before you go for a cash refinance. Don’t forget that your equity is not what you paid for it but based on your home’s appraised value. To determine potential savings with refinancing, make a list of the interest rates on your credit cards and existing mortgage. When you are listing them, examine which type of debt consolidation loan would be suitable for your financial position. Getting a second mortgage for a very low rate is a good option. Getting a second mortgage also helps if you plan to move quickly. If not, you can refinance your entire mortgage for a lower interest rate.
Start buying mortgages
There are different rates and terms that mortgage lenders package loans at. You can take advantage of the safety of a fixed rate or a low interest adjustable rate mortgage. You can even choose terms that will have an impact on your interests and monthly payments.
When you estimate the type of mortgage you would like, start shopping for a lender with a lower APR. Both interest rates and closing costs which are often hidden costs of loans are included in the APR. Lines of credit and mortgages often carry lower closing costs than traditional refinancing loans.
It is very important to compare several lenders before zeroing in on one. Search online so you can get a wide variety of them across your country.
Complete the loan procedures
For quick moves, fill out the loan application online. For your signature, the completed papers will be mailed to you within a few days. And in a few more days you will get the loan.