Debt Consolidation Mortgage Refinancing Loan

<h1>Debt Consolidation Mortgage Refinancing Loan</h1>Author: <a title="justin narin" href="http://www.articlesbase.com/authors/justin-narin/102124.htm">justin narin</a> Improve Your Finances with a Debt Consolidation Mortgage Refinancing Loan If your high-interest rate credit card debts are costing you a fortune, you could save money, reduce your taxes, and pay off your debts faster with a debt consolidation mortgage-refinancing loan. You have two options for a debt consolidation loan: mortgage refinance or home equity. Mortgage Refinance Is Best for Big Debts If you have credit card debt totaling more than $50,000 dollars or other high interest debts, then a mortgage refinance loan is the way to go. You’ll need to qualify for a new loan, but most people are offered a low rate if they’ve built equity in their homes and have a credit score over 700. With a mortgage refinance loan, you can set a term anywhere from 10-30 years and the interest is tax deductible. It’s recommended for larger loans because the longer time frame stretches out the payments to an affordable level. Depending on the amount of equity you have, you could also borrow extra money to make home improvements like installing a new roof or remodeling an antiquated kitchen or bathroom. Home Equity Loans Are Best for Small Debts If you have smaller debts in the $10-20,000 range, then a home equity loan is a better choice. Your rate will be slightly higher than a fixed rate mortgage loan, but you’ll have little or no closing costs and receive the money much faster. You can also set payment terms for just a few years rather than 25-30. There are several advantages to getting a home equity loan instead of other debt consolidation loans: * Your interest rate will be lower than you can get with a credit card * You won’t pay any balance transfer fees * Your interest is tax deductible. Borrow Safely to Protect Your Home Whether you get a home equity or mortgage refinance loan, make sure you only borrow an amount you can afford to repay. If you can’t make your payments, you could lose your home. When deciding how much to borrow, keep in mind that you should never borrow more than 80% of the current value of your home so you have a cash cushion in case home prices decline and you need to sell. You should only borrow funds against your home if the interest rate on the debt is higher than the interest rate on your home equity loan and isn’t tax deductible. It wouldn’t be worthwhile to get a 7% home equity loan to pay off a student loan fixed at 4%. If you borrow smartly, a debt consolidation mortgage refinance loan or home equity loan can save you hundreds of dollars in interest and reduce your taxes. If you own a home, consider this solution for medium to large debts. For more articles on Debt Consolidation Mortgage Refinancing Loans, visit: <a target="_blank" href="http://www.bills.com/debt-consolidation-mortgage-refinancing-loan/">http://www.bills.com/debt-consolidation-mortgage-refinancing-loan/</a> About the Author: Justin has 5 years of experience as a financial adviser; his key areas are loan consolidation, debt relief, mortgages etc. For more free articles and advice visit <a target="_blank" href="http://www.Bills.com.">http://www.Bills.com.</a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/debt-consolidation-articles/debt-consolidation-mortgage-refinancing-loan-764411.html" title="Debt Consolidation Mortgage Refinancing Loan">Debt Consolidation Mortgage Refinancing Loan</a>

Improve Your Finances with a Debt Consolidation Mortgage Refinancing Loan

If your high-interest rate credit card debts are costing you a fortune, you could save money, reduce your taxes, and pay off your debts faster with a debt consolidation mortgage-refinancing loan. You have two options for a debt consolidation loan: mortgage refinance or home equity.

Mortgage Refinance Is Best for Big Debts

If you have credit card debt totaling more than $50,000 dollars or other high interest debts, then a mortgage refinance loan is the way to go. You’ll need to qualify for a new loan, but most people are offered a low rate if they’ve built equity in their homes and have a credit score over 700.

With a mortgage refinance loan, you can set a term anywhere from 10-30 years and the interest is tax deductible. It’s recommended for larger loans because the longer time frame stretches out the payments to an affordable level. Depending on the amount of equity you have, you could also borrow extra money to make home improvements like installing a new roof or remodeling an antiquated kitchen or bathroom.

Home Equity Loans Are Best for Small Debts

If you have smaller debts in the $10-20,000 range, then a home equity loan is a better choice. Your rate will be slightly higher than a fixed rate mortgage loan, but you’ll have little or no closing costs and receive the money much faster. You can also set payment terms for just a few years rather than 25-30.

There are several advantages to getting a home equity loan instead of other debt consolidation loans:

* Your interest rate will be lower than you can get with a credit card

* You won’t pay any balance transfer fees

* Your interest is tax deductible.

Borrow Safely to Protect Your Home

Whether you get a home equity or mortgage refinance loan, make sure you only borrow an amount you can afford to repay. If you can’t make your payments, you could lose your home. When deciding how much to borrow, keep in mind that you should never borrow more than 80% of the current value of your home so you have a cash cushion in case home prices decline and you need to sell.

You should only borrow funds against your home if the interest rate on the debt is higher than the interest rate on your home equity loan and isn’t tax deductible. It wouldn’t be worthwhile to get a 7% home equity loan to pay off a student loan fixed at 4%.

If you borrow smartly, a debt consolidation mortgage refinance loan or home equity loan can save you hundreds of dollars in interest and reduce your taxes. If you own a home, consider this solution for medium to large debts.

For more articles on Debt Consolidation Mortgage Refinancing Loans, visit: http://www.bills.com/debt-consolidation-mortgage-refinancing-loan/

Justin has 5 years of experience as a financial adviser; his key areas are loan consolidation, debt relief, mortgages etc. For more free articles and advice visit http://www.Bills.com.

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/debt-consolidation-articles/debt-consolidation-mortgage-refinancing-loan-764411.html

Article Tags: Bad Credit, Mortgage, Debt Help, Finance, Debt Relief, Debt, Home Equity Loan, Credit, Student Loan, Debt Consolidation, Credit Counseling, Mortgage Refinance, Home Refinance, Bill Consolidation

Related Articles
Related Q&A

Latest Debt Consolidation Articles
More from justin narin

Do Debt Settlement Services Ruin Credit Scores?

By: Hector Milla | 17/12/2009
Have you ever been so badly faced with debt that you had considered bankruptcy?

Does A Debt Settlement Service Lower Credit Score?

By: Hector Milla | 17/12/2009
When looking into a debt settlement service, it is good to know the effects of the service on your financial status before jumping into a service plan.

Do Debt Settlement Services Hurt Your Credit Rating?

By: Hector Milla | 17/12/2009
When looking into the affects of debt settlement on a credit score, you must understand how the settlement plan works and what it does for you.

Does Debt Settlement Service Hurt Your Credit In Any Way

By: Hector Milla | 17/12/2009
In this time of shrinking budgets and growing bills, it's no surprise that so many people are worried about whether they will have to consider alternative options to getting out of debt.

Does A Debt Settlement Service Free Up Credit Cards?

By: Hector Milla | 17/12/2009
When looking into the different aspects of the debt settlement process what is a settlement? What can a settlement do for you?

Does A Debt Settlement Service Pay Off Bills?

By: Hector Milla | 17/12/2009
When looking into the benefits of debt settlement, along with what settlement does.

Does A Debt Settlement Service Affect Scoring and Credit History?

By: Hector Milla | 17/12/2009
When looking into your own debt how severely has it grown?

How Do I Get a Legitimate Debt Settlement Service?

By: Hector Milla | 17/12/2009
With the nation in the middle of a recession, more and more debt settlement services are advertising the benefits of settling debt.

Understanding Judicial Foreclosure

By: justin narin | 05/08/2009 | Mortgage
Foreclosure is one of the most severe and difficult financial processes for any consumer. Unfortunately, foreclosures are also peaking, meaning thousands of American families are now facing this dire consequence. What does it mean, and what can you do to avoid foreclosure?

Subprime Loans and the Real Estate Market

By: justin narin | 29/07/2009 | Real Estate
The Subprime Loan Fallout is Affecting All Areas of the Real Estate Market

Get the Best Mortgage Refinancing Rate

By: justin narin | 27/07/2009 | Personal Finance
In order for you to get the best mortgage-refinancing rate available to you, you will have to do a little research and a little math. Because it costs money out of pocket to refinance, it is only beneficial to you if you plan on staying in your home long enough to make up the difference between your refinancing costs and your interest savings.

FHA Mortgage Insurance

By: justin narin | 22/07/2009 | Real Estate
The FHA loan insurance program was created to help first-time buyers get into homes. However, first-time buyers usually don't have 20% down payments and may have a spottier credit history. In order to provide protect taxpayers from paying for defaulted FHA mortgages, the loans include mortgage insurance premiums (MIP).

Find the Best Bad Credit Second Mortgage

By: justin narin | 20/07/2009 | Mortgage
Although it seems strange to take on more debt to improve a bad credit history, a home equity loan may be the solution to your financial problems. Learn when you should consider a loan, and when to look for other options.

Things to Consider with a Refi Mortgage

By: justin narin | 20/07/2009 | Mortgage
A refi mortgage can be used for several purposes – to lower your interest rate, to lock in a fixed interest rate, to pay off credit card debts, or to combine two mortgages into one. It is a substantial financial decision to make, so make sure you are well informed with information before taking any action on a refi mortgage.

Refinancing Second Mortgage

By: justin narin | 17/07/2009 | Mortgage
A second mortgage, also called a home equity loan, often has a much higher interest rate than a first mortgage. Discover the money saving benefits of refinancing a second mortgage.

Home Equity Loan or Home Loan Mortgage Refinancing?

By: justin narin | 14/07/2009 | Mortgage
If you are considering taking out a secured loan against your home, two of your options are home loan mortgage refinancing with cash-out or home equity loans. Depending on your particular situation one may be better for you financially that the other.