Debt consolidating home equity finance Chat sexy skayp francais
The Loan to Value ratio (mortgage value divided by property value) should not exceed 80% (or 90% with mortgage default insurance).
The primary bonus of a home equity loan is in its debt consolidation capabilities.
Let’s say you have regular mortgage payments at a low interest rate of 4% over five years; plus, you have credit card debt at a 20% rate.
By consolidating the two, a home equity loan will allow you to tackle your most pressing debt first – in this case the credit card debt.
Check out Bankrate’s pre-qualification flow to get the best personal loan rate for you.
If you’re a homeowner with strong credit and financial discipline, tapping your home equity could be a good debt consolidation option for you.