Realizing you have a problem is your first step to recovery. Even if you are just slightly credit impaired, there is no time like the present to give yourself, and your finances a helping hand.
With a second mortgage (home equity loan), you can pay off your current bills, reduce your monthly payments and balance your budget. You'll have more money to spend each month and have fewer bills to pay.
Why pay more than you really need to every month?
I could help you to pay off your debts and provide you with one lower monthly payment.
Here's an example of how bill consolidation second mortgage can work.
Let's say you have $50,000 in home equity (difference between home value and 1st mortgage) and you owe about $45,000 on 5 different credit cards with minimum monthly payments of $1,350 at 18.5% interest rate.
I could replace it with a second mortgage home equity loan and lower your monthly payment to around $500 dollars per month.
This would be a painless way for you to save $850.00 monthly.
If you were to invest that cash somewhere instead of giving it to your credit card companies then in 5 years you would have at least $60,000 and that would be a big difference from your current situation!
Now what if you were to take this one step further and use some of your savings to start a home based business? You could become a member of my network marketing team and turn that cash to several thousands of dollars of extra monthly income in 12 months or less!
But first let's take care of your bills...
CENTURY 21 Beal, Inc. - College Station, TX
Texas Aggie Real Estate, College Station Bryan Texas Real Estate
Is there really a savings of $850 a month or is it more that the debt is just being deferred?
Jun 04, 2008 02:47 AM
Zach Taylor Real Estate - Gallatin, TN
Broker/Agent, 615-961-7799
I think the key is that if someone has gotten so far in debt with credit cards, will they after they are paid off, go back to their same old ways and get back into credit card debt and now they have lost that equity in their home?
Have A Great Day
Jun 04, 2008 02:48 AM
INVIS Canada's Mortgage Experts - Bridgewater, NS
Accredited Mortgage Professional
The Above is just an example, of what you could save, depending on what your current interest rates are for your credit cards.
In reference to refinancing and second mortgage, it is very common for someone to go back to thier old ways, but what we try to do, is educate the consumer on the correct practices, so they will not follow that same path or be tempted too.
Jun 04, 2008 02:51 AM
Ventura Property Shoppe - Ventura, CA
Ventura Real Estate
I'd be concerned, in todays real estate climate, to pay off unsecured debt by securing it with your home, but that's just me.
Jun 04, 2008 02:59 AM
The Get Off Your A$$ Academy - Manhattan, NY
Real Estate Speaker and "Expert" Coach
home equity loans may be a good option for a lot of people, but I would agree with some of these comments that to say you are "paying off debts" really is not accurate, as they are being deferred, and if we don't treat the problem of what racked up that debt in the first place, this is going to cause people lots of longer term pain. I did this, and saved a lot each month in my debt payments, but I had to learn the hard way that I couldn't keep pulling equity out of my house every time I made a bad financial decision with a credit card
Jun 04, 2008 03:02 AM
Rainer
2,606
2,606
Mustapha Maynard
Accredited Mortgage Professional
Comments(5)