Considering a Pa Debt Consolidation refinance loan?
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How does a Pa Debt Consolidation refinance loan work?
At some time, many homeowners in Pennsylvania reach a point where they have acquired some seemingly insurmountable debts. The reasons are many from job loss, divorce, illness, overspending and many more. With proper guidance and a solid plan to follow, at this point it may benefit you to consider Debt consolidation of your bills and higher rate loans into a Pennsylvania debt consolidation refinance loan. The major benefits of a debt consolidation refinance loan here is that you are essentially eliminating balances to many creditors at once. You accomplish this by borrowing against your home at usually a much lower rate than you were paying. If you are in a situation where you have a lot of debts without a specific clear plan to pay them off, our Net Equity lending professionals may be able to help you find a solution that is right for you.
In the Debt Consolidation Loan Example Chart above
this Pennsylvania couple owes $154,200 on their first mortgage wih an $1132 monthly payment, a total of $15,500 spread over 3 credit cards that they are making only minimum payments on totaling $395 per month, a car loan of $298 that they owe $14,100 on paying $298 a month, and a Pennsylvania HELOC (home equity loans) balance through a local bank of $4300 that they pay $140 a month on. In this case, their Pa home is worth $300,000 so they should have more than enough equity to borrow from. By combining all the balances into a debt consolidation refinance loan, they are able to take out one new refinance loan and lower their monthly outflows by $776 per month.If you budget looks anything like this, you might want to seriously consider a debt consolidation refinance loan. Even if you have a low rate 1st mortgage already, chances are that if you are in a significant amount of debt, the accruing high rate interest on those debts is likely more than offsetting what you may be saving with the low rate mortgage. The answer to this is a blended rate mortgage which would take into account how much you are spending each month in total cash outflow. What difference does it make to have a the lowest rate mortgage but super high rates on a bunch of credit cards and consumer loans? We can help calculate this for you to see if there is a significant benefit.
Obviously, there are a number of factors involved to consider the proper way to structure a Pa debt consolidation refinance loan. For instance, you may want to include paying off certain high rate accounts, credit cards, etc in the debt consolidation refinance loan but not others for various reasons that our refinance loan professionals can assist you with. The caveat here is that you want to refinance only one time. What you dont want to do is consolidate your debts into a new refinance loan to eliminate credit card bills, then turn around and go on a spending spree because there are no balances on your credit cards. Ultimately, If you do not change your spending habits, you could end up in a much worse financial position later on down the road.
Ready To Consolidate Your Debts and Save Money each month?
Net Equity Financial Mortgage is a 20 year 5 start licensed Pennsylvania mortgage lender committed to helping you find the best solution and improving your life.
Call us Today and speak with a licensed professional who can assist you.
(215)741-3131