Refinance Your Debt with a Home Equity Consolidation Loan to Lower the Interest & Save!

Are your Credit Card Payments Going Up? Many homeowners find themselves in a situation where their credit card debt becomes difficult to manage and high interest rates continue to compound the debt. Credit card companies offer minimum payment options which seem appealing until the realization that only making the minimum payment makes it difficult to pay off the entire debt. The minimum payments are equal to a percentage of the total debt and as a result of compounding this debt decreases quite slowly when only the minimum is paid each month. As an example of this principle consider a $1000 debt with a 21% interest rate and a minimum payment of 2.5% of the debt. In this scenario it would take the customer 192 to completely repay the debt and during that time they would pay an additional $1694.07 in interest. Although new laws for minimum payments have been implemented in an effort to assist consumers in repaying their credit card debt more efficiently these laws did not establish a fixed increase in percentage and only specified that the increase should enable customers to repay their debt in a reasonable amount of time.

To avoid these costly interest rate problems homeowners can opt for debt consolidation loans to transfer their high interest credit card debt to a home equity loan or other second mortgage option which carries a significantly lower interest rate. The decision to refinance a home is a difficult one for many homeowners and these decisions should receive a great deal of consideration before a final decision is made. There are a number of factors to consider including amount of existing credit card debt, credit scores, current interest rates, fees associated with refinancing and existing equity in the home. These factors will assist the homeowner in making the decision. In general the homeowners should evaluate these factors to determine whether or not it is economically beneficial to refinance bills with a debt consolidation loan.

Homeowners should also carefully consider their options when refinancing their debt. One of the important decisions they will have to make is whether to choose a fixed rate or an adjustable arm mortgage. A fixed rate mortgage will maintain a constant interest rate for the duration of the loan period while adjustable mortgages are typically fixed for a duration after which they fluctuate depending on the current interest rates.

Mary is very respected free-lance writer who has had many help mortgage related articles published. You can read more of her finance related loan articles at Nationwide Equity Loan Consolidation. To get more refinance advice & home equity finance tips, please visit Second Mortgage and debt consolidation loans.

Home Equity News:

Bing: home equity site:msnbc.msn.com
Search results

Home equity loans drying up for some - Business - Personal finance ...
Like many homeowners during the housing boom, Lynnette Madden and her husband decided to open a home equity line of credit about a year and a half ago as ...
Americans' home equity near a record low - Business - Real estate ...
WASHINGTON ? Falling U.S. home prices have shrunk equity so much that the proportion of their homes that Americans actually own is near its lowest point ...
Home equity lines have dried up across U.S. - Business - Personal ...
Home equity lines have dried up across U.S. As home prices collapse, banks cut off credit, further souring the economy Below:
Late payments for home equity loans rise - Business - Real estate ...
WASHINGTON ? Late payments on home equity loans climbed to a 1½-year high in the opening quarter of this year, while delinquencies on credit card bills ...
Retirees no longer count on home equity - Business - Personal ...
Many Americans have recently found themselves changing retirement plans after losing a substantial amount of home equity as the housing market and the ...
Equity in Americans? homes falls to historic low - Business ...
NEW YORK ? The equity Americans have in their most important asset ? their homes ? has dropped to its lowest level since the end of World War II ...
Students get creative to pay off loans - Business - Personal ...
Lines of credit typically work like a credit card, with a limit and a revolving balance: the average home-equity line of credit currently has an interest rate ...
Use of home equity hits a four-year low - Business - Real estate ...
Use of home equity hits a four-year low Freddie Mac report cites falling residence values, stricter lending standards Below:
Ford, Toyota are pinning their hopes on China - Business - Autos ...
NEW YORK ? Ford Motor Co. plans to build a new assembly plant in China ... $30K home equity loan FICO: 5.75%
Cities sue, invest to stop foreclosures - Business - Real estate ...
These stem from lost tax revenue and jobs as well as slower consumer spending that come with home equity declines, and don?t even include the financial toll ...

Newsfeed display by CaRP