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Debt Consolidation Mortgage Refinancing |
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The greatest savings that we can create are generally through debt consolidation mortgage refinancing. Debt consolidation is where you take cash out of the equity of your home to pay off all or most of you debt.
The greatest savings that we can create are generally through debt consolidation mortgage refinancing. Debt consolidation is where you take cash out of the equity of your home to pay off all or most of you debt. Generally, due to higher interest car loans and credit cards the end result of debt consolidation, is monthly savings. Here is an example of a typical debt consolidation proposal:
Current Situation
Balance Payment
House $210,862 $1580.17($250,000 starting balance, 6.5%)
Car $24,510 $648.51 ($25,000 starting balance, 19%)
Credit Card $12,932 $351
Credit Card $8,412 $254
Credit Card $6,312 $225
Totals $263,028 $3058.68
New Loan Proposal
Payment for the same interest rate: $1435.42, which created savings of $1623
Payment for an interst rate of 2% higher: $1877.08, which created savings of $1181
The cheapest payment possible would be the minimum payment of $670.07, which would free up $2388.61
Conclusion
You can see the power of debt consolidation, though the incredible monthly savings that can be created.
One really important point to see is that even if we raised your current mortgage interest rate, you could still save over $1,000 per month. Result like these can almost never be achieved through rate-and-term refinancing (refinancing only to drop the interest rate). With this type of savings one can overpay their mortgage to pay it off sooner, free up money to invest, or perhaps just create some breathing room. Whatever, the choice the customer makes can be life changing.
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