single romance love dating site of malaysia - Consolidating second mortgages

You not only get one of the best interest rates available, but you can also stretch out your payments for 15-20 years or even longer, allowing you to minimize monthly payments.A home equity loan is a type of second mortgage that is secured by the equity (ownership) you have in your home.There may be other wrinkles involved - for example, some of your creditors may be willing to write off part of your debt in return for an immediate payoff - but the key thing is that you're simplifying your finances by exchanging many smaller debt obligations for a single bill to be paid every month.

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This not only simplifies the payments, but can also provide real debt relief by reducing those payments as well.

A consolidation loan can reduce your monthly debt payments in two ways.

Many lenders specifically offer loans for this purpose.

Of course, this approach requires that you have fairly good credit - if your FICO credit score is in the mid-600s or lower, you may have trouble getting such a loan from a bank or credit union.

It's also possible that the interest rate on such a loan won't be lower than what you're already paying - in which case any reduction in your monthly payments would have to come from arranging a longer repayment schedule than you have with your current creditors.

Another option would be to obtain a cash advance through one of your credit cards.

However, these cash advances can also get you into trouble, because they usually reset to a fairly high rate once the no-interest period expires - often 16 to 18 percent.

They also typically charge an up-front fee of several percent of the amount borrowed, so you need to take that into account as well. One of the best, and most popular ways to consolidate your debt is through a home equity loan.

Because it's a secured loan, you can get a better interest rate than you generally can on a personal loan or other unsecured loan.

And because it's a type of mortgage, you may be able to deduct the interest payments on your federal tax return.

Generally, anything where you've incurred a debt that needs to be paid off over time - credit card bills, auto loans, medical bills, student loans, etc.

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