A home equity loan, or second mortgage, can be a great way to consolidate debt when done correctly. You use the equity in your home as collateral to secure the loan. Then, you can move to a lower rate, get cash out for home improvement projects, or pay down debt with lower payments or cash in your pocket.
When considering a second mortgage, you'll want to take a few things into consideration: closing costs (and how long it will take to recoup them), current debt, and interest rate savings. Are the monthly savings enough to quickly recover the closing costs? Is your current debt surmountable without a loan or do you really need this boost to "get over the hill?" Finally, is your new rate low enough that you're able to save monthly and pay down debt as well?
Once you've considered these main factors, you're ready to apply for a second mortgage. Now is the time to take advantage of lower rates, but we don't feel like you should feel highly pressured to do so. At Downs Financial, Inc., we've been in the business for over eight years and plan to stay in the business many more.
We are patient and we do not rush to make a quick buck. We are a direct lender, so we've got our own money. This means lower rates, quick approvals and no-hassle service. When you're ready to apply for your second mortgage, come visit us online or give us a call--we promise a great experience and a solid loan you can rely on.
