Debt Consolidation

Conslidate your debts with the equity in your home.

Stop letting the credit card companies hold you down. With the high interest rates on most credit cards you can never get ahead. If you are making the minimum payments on your credit cards, you are paying mostly interest.

If your credit cards are maxed out, or even close to the limit, your credit rating drops.

If bill collectors are calling you, your credit is suffering.

And if you are paying interest on credit cards, your interest payments are not tax deductible.

If you refinance your home and consolidate debts into the mortgage:

• You will pay a lower interest rate.
• The interest payments may be tax deductible.
• You will pay less money towards your debts every month, which saves you cash.
• You will pay off your creditors and stop annoying calls from bill collectors.
• You will improve your credit rating.
• Get out from under your debts and get a fresh start today with a debt consolidation loan.

What is a debt consolidation loan?

With a debt consolidation loan, you replace credit card bills and other debts with a single loan, often with a lower monthly payment and a longer repayment period.

Is a debt consolidation loan the same as a home equity loan?

You can use several mortgage products to consolidate debt. A home equity loan is one popular product. A home equity loan is a second mortgage. Another product with which you can consolidate debt is a first mortgage refinance.

You should talk to a mortgage professional about your options.

I hear that mortgage payments are tax deductible, is that right?

Yes and no. Interest paid on a mortgage is tax deductible in many cases. The entire mortgage payment is not deductible-only the interest part. You should talk to an accountant or tax professional about the actual deductions you will get with a given mortgage.

Should I do a cash out refinance or a second mortgage to consolidate my debt?

It depends. You should talk to a mortgage professional about this to get an answer that fits your circumstances. Your loan officer will go through this information with you and help you to make an intelligent decision.

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