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Buyer
Information
Refinancing and Debt Consolidation
Debt
Consolidation is a term of refinancing were your use the equity in your home to
pay off higher interest debt. It is a very common practice these days among homeowners
who wish to lower there overall monthly debt load.
The banks will actually
allow you top up your existing mortgage to incorporate those debts and remove
the debt load without having to take out a second mortgage. In simple terms, you
can increase your mortgage at a 4.5% rate and replace your 20% interest rate credit
cards.
Check out this example to see how much money you can start to save
on a monthly basis:
Before
Debt Consolidation
| Monthly
Payment | | Property
Value: | $200,000.00 | | Current
Mortgage @ 5.00% | $ 150,000.00 | $
872.00 | | Credit Card Debt
@ 18.00% | $ 20,000.00 |
$ 600.00 | | Total
Monthly Payment: | $
1,472.00 |
After
Debt Consolidation
| Monthly
Payment | | Property
Value: | $200,000.00 | | Current
Mortgage @ 4.50% | $ 170,000.00 | $
988.00 | | Total
Monthly Payment: | $
988.00 | | Monthly
Savings: | $484.00 |
As
this example shows, if you are able to refinance your existing mortgage for more
money and then use the additional funds pay off your debts and lower rate. You
can potentially save a total of $484.00 per month.
Please contact
me for your own personal debt consolidation analysis. |
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