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Consolidate Your Debt With A Home Equity Loan And Improve Your Credit Score
A home equity loan is a loan based on the difference between what your current home value is and what you currently owe on your house. There are also mortgage companies that will loan a little over the equity you have in your home. They can usually do this safely because most homes appreciate in value over time.If you have credit card debt at a high interest rate, or even at an average rate, you may want to consider getting a home equity loan to consolidate your credit card debt for a few reasons.
1. Having the credit card, but not being maxed out, or having the credit card paid off will boost your credit score. The amounts you owe make up about 30% of your credit score, that could be a huge difference if those accounts are paid off.
2. You can have a lower payment because of the lower interest rate you can get with a home equity loan. If having a lower payment helps you be able to make the payment on time, that will boost your score tremendously.
3. Lowering your payment will lower your debt to income ratio, which will help you when you go to get any other kind of financing in the future.
4. A home equity loan is usually set for about 5 years before it is paid off. Sometimes, making the minimum payments on your credits will never pay them off.
As you can see, there are some great benefits to consolidating your debt with a home equity loan. Its definitely something worth considering if it will lower your rate and lower your payment.
About the Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans. To view our list of recommended home equity lenders online, visit this page: http://www.abcloanguide.com/homeequityloan.shtml
More Useful Resource and Updates on california home equity
- FBI saw threat of mortgage crisis (Orlando Sentinel)
A top official warned of widening loan fraud in 2004, but the agency focused its resources elsewhere. Long before the mortgage crisis began rocking Main Street and Wall Street, a top FBI official made a chilling, if little-noticed, prediction: The booming mortgage business, fueled by low interest rates and soaring home values, was starting to attract shady operators and billions in losses ...
- Lenders remain wary of real estate investors (Contra Costa Times)
Cupertino accountant Richard Smith wants to buy a few bank-repossessed houses in Antioch and Brentwood priced at about $200,000 and rent them out. He can make down payments of about 30 percent, and can afford the mortgage payments. But he can't find a bank who will make him the loans. The problem? Few if any lenders these days will make loans to those who already have four or more mortgages. ...
- Understanding Foreclosures: It?s About the Income Gap (Santa Monica Mirror)
Casting blame has been easy during this year?s great and ongoing epidemic of home mortgage foreclosures.
- FBI saw mortgage crisis threat in 2004 (Newsday)
A top official warned of widening loan fraud in 2004, but the agency focused its resources elsewhere. Top official reported shady operators and widening fraud, but agency had other priorities, like national security
- Equity capital improvement program (San Diego Daily Transcript via Yahoo! News)
Equity Office, an affiliate of The Blackstone Group (NYSE: BX), announced a $25 million capital improvement program throughout its 11 million-square-foot Southern California portfolio.
- Judge dismisses borrower lawsuit against IndyMac (Washington Post)
NEW YORK (Reuters) - A federal judge has dismissed a lawsuit accusing the now-bankrupt mortgage lender IndyMac Bancorp Inc (IDMC.PK) of inflating the appraised values of homes and misleading borrowers into paying higher closing and financing costs.
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