Start Your Journey To Becoming Debt-Free Today By Consolidating Your Debt With A Home Equity Loan!
At Clover Mortgage, we’re here to help you get out of debt faster. If you own your own home and need a loan to help pay down some of your other higher interest debts, we can help you get approved quickly and easily for a debt consolidation loan using the equity in your home, or in other words, a home equity loan.
What Is Debt Consolidation?
Debt consolidation is when someone combines their high interest debt, such as credit card debt, student loans, car loans, and more, into one smaller monthly debt payment at a lower interest rate than the original rates that each debt came with.
There are many benefits to consolidating debt. One of the most important advantages is that it can, if done correctly, help you pay off your debts faster while increasing the amount of cash you keep in your pockets at the end of every month. This can reduce years of payments and save you tens of thousands of dollars in interest costs associated with the previous loans. It can also help you improve a low credit score and credit rating provided that you make your monthly payments on the new loan on time.
What Is A Debt Consolidation Loan?
A debt consolidation loan is the name for the actual loan that consolidates and combines high interest debt into one simpler lower interest loan. This newly combined loan has one simple monthly payment. Since the new debt consolidation loan has a smaller interest rate, that new monthly payment is lower than the combination of monthly payments were for the existing debt.
How Does A Debt Consolidation Home Loan Work?
A debt consolidation home loan is a debt consolidation loan using the equity you have saved up in your home offers many advantages to potential borrowers. It allows you to breathe easier by helping reduce all of your larger monthly payments into one single and much smaller monthly payment. This type of loan can help you save money on monthly payments by settling other higher-interest debts and replacing them with a lower short-term interest-only loan. The interest on debt consolidation loans is often substantially lower than credit card interest rates so your new monthly payment can be much cheaper than your payments were before. In fact, if you can lock in a lower interest rate and continue making the larger monthly payments towards your loan as you were prior to consolidating, you will likely be able to pay the down debt much faster than anticipated!
If you are in the process of paying off an existing mortgage, the added stress of unpaid credit card bills could be even higher. If you find yourself overwhelmed by credit card debt and mortgage payments home equity loans maybe an option to consider.
Advantages Of Consolidating Debt Through A Home Equity Loan:
- Increased cash flow: A debt with a lower interest rate than your credit cards will increase your current available monthly income.
- Customized financial plan: Your mortgage professional will help draw out a repayment plan that will be spread over a period of 2-5 years keeping in mind your financial goals and ability to repay the debt.
- Streamlined payments: Multiple larger monthly payments will now be downsized into one single lower monthly payment that can help you pay your debts off faster.
- Credit score: If you have a poor credit score, having the high interest sources paid off will enable you to work on building your credit score. This is a factor that is very important when applying for a future mortgage or renting a property.
- Principal repayment: When paying off credit card debt using only your income, the minimum payments often times only pay for the interest itself. This still leaves you in a lot of debt and in ongoing financial distress.
How Can We Help?
Interest rates start as low as 1.99% at the time of this page update for a full mortgage refinance through an A-lender bank, and starting at 6.99% for a second mortgage through private mortgage lenders. Some private lenders are willing to lend up to 80% of the equity in your home. Our team of experienced and trusted mortgage agents specialize in helping Canadian homeowners like yourself find solutions to help you get out of debt faster and free up extra cashflow in the process.
At Clover Mortgage we pride ourselves at providing same day approvals and in many cases we can get the money to you within 48 hours to help you reach your goals faster and contribute towards your financial stability.