Debt Consolidation Loan For A Home Owner - 3 Things To Consider

Authored By: Carrie Reeder

If you want to consolidate your debt--and you own your own home--you're in luck! If you're willing to use your house as collateral, you have a lot of low-cost options for debt consolidation. Here are three loans to consider:

Second mortgage

A second mortgage is, essentially, another mortgage on a home that already carries a mortgage loan. The second mortgage takes a backseat to the first one, so it's a bit riskier for lenders. Because of this additional risk, second mortgages usually carry shorter terms and higher interest rates. However, you can use the money you borrow from a second mortgage to consolidate your debt into one payment. And even though the interest rate is typically higher than your first mortgage, it's usually still lower than the average credit card or personal loan rate.

Home Equity Loan

A home equity loan borrows a lump sum of money from the equity in your house--the value of your home minus the amount you currently owe on it. For example, if your house is valued at $250,000, and you currently owe $200,000 on your mortgage, you have $50,000 in equity that you can borrow. That means you can get a lump sum totaling $50,000, which you can then use to pay off other debts. In general, home equity loan rates tend to be low, and in many cases they are tax deductible.

Home Equity Line-of-Credit

A Home Equity Line Of Credit--also known as HELOC--is a type of revolving loan. Like a Home Equity Loan, you are borrowing from the equity in your home. However, unlike a Home Equity Loan, you don't get a lump sum of cash. Instead, as a line of credit, you can draw on it any time for any amount (up to your limited maximum). HELOCs, in general, tend to have lower interest rates than Home Equity Loans.

Although borrowing a second mortgage or using the equity in your home can be a simple and low-cost way to consolidate your debt, it's important to remember that, in all these cases, your home is the collateral for the loan. So before you borrow against your home, be certain you will be able to make your monthly payments.

Try using www.abcloanguide.com for a list of Recommended Debt Consolidation Companies online. Their recommended companies are reputable and competitive in their rates.

Article Source: http://www.FinanceNook.com
Your One-Stop Quality Finance Article Source

Home | Debts | Debt Consolidation

Read Additional Related Articles from the Debt Consolidation Category

Listed below are more articles related to the above article.

People interested in the above article "Debt Consolidation Loan For A Home Owner - 3 Things To Consider" are also interested in the related articles listed below:

Read more related articles in Home | Debts | Debt Consolidation

Return Home

FinanceNook.com Home

Featured Sites

Internet Marketing
Website marketing strategies and tips for promoting a business online

Small Business Marketing
How to get more customers or clients than you ever dreamed possible

Social Bookmarking

Bookmark on del.icio.us

Popular Articles

RSS Feeds

FinanceNook.com Home | Top of Page

United States of America . United Kingdom . Canada . Afghanistan . Albania . Algeria . American Samoa . Andorra . Angola . Anguilla . Antarctica . Antigua & Barbuda . Argentina . Armenia . Aruba . Australia . Austria . Azerbaijan . Bahamas . Bahrain . Bangladesh . Barbados . Belarus . Belgium . Belize . Benin . Bermuda . Bhutan . Bolivia . Bosnia-Herzegovina . Botswana . Brazil . British Virgin Islands . Brunei Darrusalam. Bulgaria . Burkina Faso . Burundi . Cambodia . Cameroon . Cape Verde . Cayman Islands . Central African Republic . Chad . Chile . China . Colombia . Comoros . Congo . Congo (Dem. Rep.) . Cook Islands . Costa Rica . Côte d'Ivoire . Croatia . Cuba . Cyprus . Czech Republic . Denmark . Djibouti . Dominica . Dominican Republic . East Timor . Ecuador . Egypt . El Salvador . Equatorial Guinea . Eritrea . Estonia . Ethiopia . Falkland Islands and Dependencies . Faroe Islands . Fiji . Finland . France . French Guiana . French Polynesia . Gabon . Gambia . Georgia . Germany . Ghana . Gibraltar . Greece . Greenland . Grenada . Guadeloupe . Guam . Guatemala . Guinea . Guinea Bissau . Guyana . Haiti . Honduras . Hong Kong . Hungary . Iceland . India . Indonesia . Iran . Iraq . Ireland . Isle Of Man . Israel . Italy . Ivory Coast . Jamaica . Japan . Jordan . Kazakhstan . Kenya . Kiribati . Korea (North) . Korea (South) . Kuwait . Kyrgyzstan . Laos . Latvia . Lebanon . Lesotho . Liberia . Libya . Liechtenstein . Lithuania . Luxembourg . Macau . Macedonia . Madagascar . Malawi . Malaysia . Maldives . Mali . Malta . Marshall Islands . Martinique . Mauritania . Mauritius . Mexico . Micronesia (Federated States) . Moldova . Monaco . Mongolia . Morocco . Mozambique . Myanmar (Burma) . Namibia . Nauru . Nepal . Netherlands . Netherlands Antilles . New Caledonia . New Zealand . Nicaragua . Niger . Nigeria . Niue . Norfolk Island . Northern Mariana Islands . Norway . Oman . Pakistan . Palau . Palestine . Panama . Papua New Guinea . Paraguay . Peru . Philippines . Poland . Portugal . Puerto Rico . Qatar . Reunion . Romania . Russia . Rwanda . Sahara . Saint Helena . Saint Kitts and Nevis . Saint Lucia . Saint Pierre & Miquelon . Saint Vincent & The Grenadines . Samoa . San Marino . São Tomé & Príncipe . Saudi Arabia . Senegal . Serbia . Seychelles . Sierra Leone . Singapore . Slovakia . Slovenia . Solomon Islands . Somalia . South Africa . Spain . Sri Lanka . Sudan . Suriname . Swaziland . Sweden . Switzerland . Syria . Taiwan . Tajikistan . Tanzania . Thailand . Togo . Tongo . Trinidad & Tobago . Tunisia . Turkey . Turkmenistan . Tuvalu . Uganda . Ukraine . United Arab Emirates . Uruguay . Uzbekistan . Vanuatu . Vatican City (Holy See) . Venezuela . Vietnam . Yemen . Zaire . Zambia . Zimbabwe

Template Design by Larry Lim | Powered by Article Dashboard