Refinancing your home loan today has been made easier than ever. With the housing market slowing to a more normal pace, lenders for the most part have been reducing or "relaxing" there requirements for a home owner to qualify for a debt consolidation home loan. Many lenders today offer 100% cash out and some even offer up to 125% cash out/debt consolidation based on the current value of the home. In some situations these options may be the only way a client can get there finances under control.
The obvious danger here is that after this type of the home loan refinance, if the client is not prepared to make a change in there spending habits or how they are managing there finances then this could be a recipe for disaster.
When counseling a client with this type of home loan it is our responsibility to make sure that we try to educate as well as provide resources so that the client can hopefully get the education they need and put these resources to work for them and get there financial situation under control.
Budget and income tracking resources are probably the most valuable resource for this type of client and are readily available on the internet, but if a client is not familiar with setting up a budget then they may not know where to look or what products are best.
Once a client is able to understand the importance of a budget and is committed to learning different types of strategies to create financial wealth then you can in a few years get them into the type of home loan that will help them create long term financial independence.
A couple if resources that I recommend to all my clients are;
Financial Freedom Society-Educational Program
Personal Mvelopes-Budgeting Program
These 2 products will give the client a good start in understanding the value of having a financial plan and how to execute one.