Cash Out and Debt Consolidation

Overcoming High Debt By Cashing Out and Debt Consolidation

Overwhelmed with debt? Most situations with high credit card balances, student loans, large mortgage payments, auto payments, and other debt obligations can be overcome by cashing out on your home if you have equity. Your annual percentage rate(APR) on your home loan versus your credit card or other debt obligations are usually a lot lower. You can save a lot of money by paying off your credit cards/other debt obligations with the equity in your home. Depending on the situation you can cash out FHA, Conventional, USDA, and VA when paying off your credit cards with the equity of your home.

Home values have increased significantly over the past few years – especially in Colorado, Florida, Georgia, Illinois, Washington, and Virginia.  A cash out or debt consolidation loan is a solution to borrowers who are overwhelmed with high monthly payments. When comparing debt consolidation payments versus building them into your mortgage is tremendous monthly savings. Credit cards can have 20 plus percent interest rate and car loans have short term financing with a higher rate than a mortgage.

Conventional Cash Out and Debt Consolidation

FHA Cash Out and Debt Consolidation:

  • Up to 85 percent loan to value with no pricing adjustments on the interest rates. Conventional loans have pricing adjustments when you do a cash out refinance and the interest rate is usually higher than a rate and term refinance.

VA Cash Out and Debt Consolidation:

With a VA Cash out, the maximum Loan to Value and Combined Loan to Value is allowed up to 100% excluding the VA Funding Fee

Benefits for Cash Out and Debt Consolidation:

  • Defer up to 2 mortgage payments
  • Overall lower monthly debt payments
  • FHA – Possible Refund on Initial FHA Insurance Premium and lower monthly insurance
  • One low monthly payment with no high balances with many different accounts
  • Refund on your current escrow balance

Home values have skyrocketed. Use this advantage to eliminate mortgage insurance forever and knock out stressful bills with extra cash.

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