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Need Debt Consolidation Help? Find the Answer at Home
by Gil Mackey
CMR Columnist
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It's easy today to let your debts overwhelm you. With student loans, car loans, and credit cards, things can easily get out of hand. Add life's little emergencies to the mix and you may find yourself in over your head--a home equity loan could provide the debt consolidation help you need!
Debt Consolidation: a Home Equity Loan Could be the Answer
If the description above hits a little too close to home, then it's time to act. If you have equity in your home, it's a smart idea to consider debt consolidation by taking out a home equity loan. A home equity loan typically has a lower interest rate than any other debt consolidation loan you might be offered, especially if you're looking at unsecured loans. Additionally, the interest you pay on a home equity debt consolidation loan is usually tax deductible.
What You Should Know About Getting a Home Equity Loan
- A home equity loan is a second mortgage on top of the one you already have
- There are fees, which vary from one mortgage lender to the next, but usually range between $75 to $200 or so, as well as title insurance and an appraisal fee
- Most fixed-rate home equity loans are based on a 15-year mortgage
- Adjustable rate mortgages are also available for home equity loans
- Most mortgage lenders let you borrow up to 80% of the value of your home, but some may allow more
Whatever you do--don't let your situation get worse. Talk with your mortgage lender and see if a home equity debt consolidation loan is the solution you've been looking for.
About the Author
Gil Mackey has been a writer and artist for the past twenty years. In addition to freelancing, he writes for his local paper, and lives with his two children in Nevada.
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