Debt Consolidation

You can consolidate your debt through a second mortgage or a home equity line of credit and lower your monthly payments. Remember that these types of debt consolidation loans require you to put up your home as collateral. If you can’t make the payments — or if your payments are late — you could lose your home.

A line of credit "HELOC" offers a great deal of liquidity along with low interest rates. Presently, a line of credit can cost about 4% or 5% a year.

Second mortgages are generally considered to be a higher risk than the original mortgage, since the lender which issued the original mortgage has first rights to the property… because of this, interest rates for a second mortgage are usually higher than those for the primary mortgage.

Consolidation offers students a "breather" by simplifying and extending repayment. After consolidation, credit bureaus are notified that your account has a zero balance after you sign a new promissory note that will establish a new interest rate and repayment schedule.

Compare rates from at least three companies. Never accept their published rates as final (they will compete for your business).

Whether buying or selling a vehicle; first check KBB (Kelley Blue Book), Black Book, Red Book, or the NADA Used Vehicle Guide.

For complete information on all your financial needs, visit the Loan homepage.

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