Debt Consolidation Loan
Need to consolidate your debt into one location, and access the lowest interest available for it? A debt consolidation loan may be the solution.
Through a debt consolidation loan, you can consolidate high-interest debt into a refinance with a lower interest rate. Instant savings for you.
Debt Consolidation Loan
Through a Debt Consolidation Loan, you can regain financial freedom and start saving money by getting rid of sky-high interest rates that come with credit card debt. Take advantage of historically low interest rates, and refinance your home to consolidate your debt into one manageable monthly payment.
Regardless of where your credit score is at, we can help you get out of making multiple high-interest payments each month. Your monthly bill cycle will become more simplified and organized, and you will be paying less money each month. Don’t miss your chance to save thousands of dollars each year through a debt consolidation loan.
What is a Debt Consolidation Loan?
A debt consolidation loan is a type of refinancing where you take out one larger loan in order to pay off several other debts (that are often charging a higher interest rate). Debt consolidation loans are traditionally used to go toward consumer debt that has been built up through credit cards. The interest rate on a debt consolidation loan is significantly less than the interest rates credit cards charge. It’s an opportunity for you to move your debt into one place and save money through a lower interest rate.
Benefits of a Debt Consolidation Loan
Debts are in One Location
If you are having a difficult time keeping track of all of your debts, and which payments are due on certain dates, a debt consolidation loan is a great option. Because you are putting all of your debts into one location, you simply have to make one monthly payment, and you’ll no longer have to worry about forgetting a bill—and dealing with the late fees that come with it. Ease your mind and simplify your bills with a debt consolidation loan.
Debt Consolidation Loans Offer Lower Interest Rates
One of the most attractive benefits of a debt consolidation loan is the savings of a lower rate. Interest rates on credit card debt are notoriously high, meaning that consolidation of debt into a new loan can save you thousands in interest. Your monthly payment may be lowered by hundreds of dollars per month; one of our customers saved $700 per month on her payments.
Raise Credit Score with Cash-Out Refinance
With a cash-out refinance, you can use the cash you receive to pay off high-interest credit card debt. By paying off credit card debt, you can improve your credit score and start saving money.
Interest on Debt Consolidation Loans are Tax Deductible
With a debt consolidation loan, you’ll not only simplify your bill-paying methods and save money through a lower interest rate, but you’ll also save money on your taxes. Interest that’s paid on your debt consolidation loan is deductible from your annual taxes. Talk to your tax preparer if this is an option for you.
Debt Consolidation Loan FAQs
Will my credit score be affected by a debt consolidation loan?
In most cases, taking out a debt consolidation loan is a neutral action when it comes to your credit score. You can take steps toward paying off your debt, while saving money, and not worrying about how it will affect your credit score!
How do I know if a debt consolidation loan is a good choice for me?
When evaluating options for a debt consolidation loan, look closely at the interest rate, length of agreement, and any additional conditions of the loan. Be sure to do a thorough calculation to ensure that the new plan through a debt consolidation loan makes more sense than remaining in your current situation.
How does the equity in my home help me pay off my debts?
The amount of money you have already paid into your mortgage will reflect how much equity you have built up in your home. Many homeowners who are dealing with high-interest debt (often credit card debt) will tap into that equity to get a cash-out refinance to cover their current debts, and start repaying the loan from the refinance at a much lower interest rate.
How do refinancing and debt consolidation go together?
Because mortgage rates are significantly lower than credit card interest rates (averaging 4% vs. 15%), you can refinance your home to reduce the cost of interest on payments toward repaying your debt. You can tap into the equity of your home to refinance your house and start paying off your debt quickly.
Make an appointment with a mortgage expert.
Have questions? Want to learn more? Schedule an appointment for one of our banker to call you.
Why choose Homesite Mortgage for your refinance?
Our licensed mortgage bankers are trained to offer intelligent mortgage advice!
Our interest rates and closing costs are low so that you’ll save more money!
We may be able to waive the need for a home appraisal!
Our state-of-the-art technology is designed to save you time and keep your personal information safe!
Our mortgage process is quick and easy – you’ll typically close your loan in just 18-20 business days!
Our company culture is truly consumer-focused and we guarantee your mortgage experience will be better than any other!