Residential Mortgage Loan Refinance rates are amazing! There are many reasons to consider this process today if you are a homeowner, and not because of “just” lower interest rates! Many use the time to also pull cash out or do a debt consolidation loan to take advantage of today’s Home Equity. While some consider refinancing a headache, most borrowers note there is just to much potential interest savings for Borrowers to leave that money in the “Banks Hands”. Today’s homeowners must take every opportunity to save on all of their Mortgage and debt. This means they need a good lending team and to stay alert and stay in touch with interest rate conditions and potential savings.
What is a Mortgage Debt Consolidation Loan?
In simple terms a Mortgage Debt Consolidation Loan is the process of combining multiple debts from home loans, credit cards,and/or cash out into a single lower monthly payment or to a shorter loan term to achieve better financial planning and better cash flow. This allow families to take advantage of today’s Home Equity positions for better planning. This may be rolling all your debts into a single monthly payment for better cash flow AND often at a much lower interest rate. Or pulling Cash out at the same time for financial planning to increase your reserves, to fund a college education and even to increase retirement reserves.
Are there different types of Debt Consolidation loans?
Yes. A Mortgage Debt Consolidation Loan that consolidates debt is typically either a Home Equity Line of Credit, a fixed term “One Draw” Second Trust Deed OR a new First TD cash out refinance loan. All three loan types have their unique advantages. For example, a Cash Out Refinance New First Trust Deed Real Estate Loan often allows you to consolidate all of your other debts into one loan providing you have the equity and that program usually offers the best Loan terms and rates, as well as the longest repayment periods.
Many of these solutions we offer are not offered by the typical “local full service banks”. Our sources allow “Less loan Documentation” Lending to qualified borrowers, so we can use say 12 month personal bank statements, or 12 months business bank statements verse say 2 years Federal Tax returns and W2’s to help our clients qualify for a new Real Estate Loan. We are great at working with Self Employed and Credit scores over 620. This product also often allows for both debt consolidation AND cash out, typically up to 90% + loan to value.
Many of our Borrowers are Business Owners, Self Employed Borrowers, Families and Investors who do NOT want to struggle with the typical “Local Bank” loan paperwork requirements. (which often clearly lead to a Loan denial). They need specific solutions, action, and usually less Loan Documentation. They may have tax extensions, One time Stock sales, Foreign Income. Many carry forward losses and other factors that limit the income banks may allow from tax returns.
NMLS #347918 CADRE# 01146347