Debt Consolidation Loans

The Loan Office Programs

We offer the following debt consolidation loans:

• 125% Loan to Value Programs for good credit borrowers with little equity.

• 100% Equity Programs for good to poor credit borrowers with equity in their home.

• No Equity Required Programs for borrowers of all credit grades and generally (but not always) with some percentage of home improvement.

Debt consolidation loans save money, time and sleepless nights.

Debt consolidation loans can save you a lot more than money. A debt consolidation loan can also save you time, while it eliminates worry.  Imagine... just two payments to make each month.  Only two checks to write, one for your first mortgage and the second for your second mortgage, your new debt consolidation loan.  No more swapping credit card balances, wondering when the card company will raise the rate.  No more worrying whether you missed paying any of your bills on time.  No more 5, 10  and yes, even twenty different checks a month going out to different companies each month.   Whether you need a 125% equity program to borrow more than the equity in your home, or a no equity required loan, let us show you how easy it is to lighten the load through a debt consolidation loan.

Debt consolidation loans - benefits are many and varied

 Debt Consolidation and the Tax Deductibility Question

Debt consolidation loans, secured by a mortgage on your home, often allow you to deduct the interest you pay, unlike the typical consumer loan where the IRS disallows the interest deduction.  Deducting home mortgage interest lowers the effective interest rate on a debt consolidation loan. 

For example, if you fall into a 33% marginal tax rate, a debt consolidation loan with a rate of 12 percent will "feel" like a rate of only 8% after deducting the interest paid from your income for tax purposes.  In other words, the government isn't entitled to collect tax on income offset by the home mortgage interest deduction.    As always, you should consult with your professional tax advisor for what your actual tax benefits will be.

Home Equity Loans for Major Purchases

Debt consolidation loans as well as other types of  home equity loans are frequently taken out to make major purchases like cars, RV's, and boats. Down payments for second homes and as a source of funds for investment and business startup capital are leading reasons individuals borrow money with home equity loans. Again, tax deductibility is one of the primary reasons borrowers prefer this type of loan.  

Home Improvement and Debt Consolidation Combinations

Debt consolidation loans in combination with home improvement loans, where some portion of money is allocated to home improvement are very popular today.  These combo loans often carry lower interest rates and allow for lesser credit qualifications than other debt consolidation loans or cash out home equity loans.  They also usually require no equity, thus no costly appraisal, and can be applied for immediately after acquiring your home.  Follow the link above to learn about our home improvement loan programs.  You will be amazed at how you can add a new deck, remodel your kitchen and still consolidate your debts for less than you are paying now.

Consolidation Loans and Credit Improvement

Second mortgage debt consolidation loans are frequently sought in order to avoid bad credit or to pay off old credit blemishes and improve the borrowers credit rating.  The better your credit, the less you pay to borrow and the easier it is to get a loan.  The IRS notifies you that they are about to issue a tax lien against you.  There's no dealing with them and you don't want a credit blemish.  You seek a debt consolidation loan to pay them off.  Unexpected medical bills pile up, a debt consolidation loan can take the heat off.  You have old collections and judgments, no one wants these on their credit records.  But unfortunately sometimes they are unavoidable.  Getting them paid off as soon as possible is the best solution to improving your credit. 

There is a program suitable for virtually all home owners and every circumstance.  Call us today about a debt consolidation loan.  We'll help you lower you payments and sleep at night.