Archive for the ‘Debt Consolidation’ Category

We have Debt Consolidation Loans

A debt consolidation loan is a loan in which you cash out on some of the equity in the house to pay off debt. Debt consolidations can include car loans, credit cards, student loans, outstanding property taxes and any outstanding debts that can be verified in your credit report or official document. The Debt is paid directly from the loan proceeds to the creditor based on the amount specified on a pay off letter from the creditor. Debt consolidation loans are considered cash out loans which, depending on credit scores, LTV’s and income verification types, can result in a slightly higher interest rate then you would get if you did not apply for cash out. The slight increase in rate is worth it since you now would have a lower total monthly obligation by including your over all debt in to your mortgage payment. There are times, however, when debt consolidation may not be right for you. Please read our other, more detailed, section on debt consolidation which will give you a better idea of how to decide if debt consolidation is right for you.