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What is a Debt Consolidation Loan? A Debt Consolidation Loan (Home
Required) allows you to combine all your debt into one lower monthly
payment. The benefit to you is that you can free up extra cash for personal
needs. This type of bill consolidation is done by way of a home equity loan or
refinance loan and therefore, requires the applicant to own a home.
If you do not own a home and would like to consolidate bills, you can apply
for a debt management plan.
What is a Debt Management Plan?
A Debt Consolidation (No Home Required) is also
called a Debt Management Plan. You consolidate your unsecured debts (such as car
payments, college loans, credit card payments) into one lower monthly payment.
The benefit of this type of debt consolidation is that you lower your monthly
payout and are no longer bothered by your creditors. This is not a loan.
What is a Home Equity Loan?
Home Equity is the difference between what your house is worth and how much you currently owe (balance on your mortgage). A home equity loan is actually a "second mortgage" loan on your home and, as such, is a separate loan payment from your present mortgage payment.
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What is an Equity Line of Credit? An Equity Credit Line or a Home Equity Line
of Credit is a revolving line of credit that works like a credit card. You use the money
as you need it, repay all or a portion of it and use it again as often as you’d like. You only pay interest on the amount you use, and the interest rate will fluctuate according
to financial market conditions.
What is a Home Improvement Loan?
Home
improvement loans allow you to take cash stored up in your home equity and use
it to finance construction projects. The best home improvement loans are fully
amortized with a fixed rate placed in second position on the title of your home.
Because an online home improvement loan is essentially an equity loan or second
mortgage, a major advantage is your ability to write off the interest on your
payments.
What is a Refinance Loan? A refinance loan allows you to lower your
First or Second Mortgage rate and thereby save money. Change the rate of your
loan term, access fast cash and more.
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What is a 125%
No Equity Loan? A 125% no equity loan, also known as a "no equity
loan" allows you to exceed the appraised value and borrow an additional 25%
worth of equity. Homeowners are able to pay off credit cards, installment loans,
and unsecured loans as well. Consolidating your bills into one mortgage payment
can reduce your monthly expenses by a few hundred dollars.
**The downside of 125% no equity loans is that you
may be borrowing more than your home is worth.
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