Nationwide Mortgage & Realty, LLC
Tel: 844-953-0100 Email: info@nationwidemtg.net
Friday, March 24, 2023

Nationwide Mortgage & Realty, LLC

Fast Quote
  • Home
  • About Us
    • Career Opportunities
    • Contact Us
    • Meet the Team
  • Purchase
    • Conventional Mortgage
    • Condotel & Non-Warrantable
    • FHA Loan
    • FHA 203k
    • Fix & Flip
    • Investment
    • Jumbo Loans
    • New Construction
    • Non-QM Loans
    • USDA Loans
    • VA Purchase Loan
  • Refinance
    • Cash Out & Debt Consolidation
    • Conventional Refinance
    • Condotel & Non-Warrantable
    • FHA 203k
    • FHA Streamline Refinance
    • Investment
    • Non-QM Loans
    • Reverse Mortgage
    • VA IRRRL (Streamline)
  • Loan Process
    • Application Checklist
    • Credit Repair
    • Home Buying Do’s and Don’ts
    • Interest Rates
    • Mortgage Calculator
  • Mortgage Blogs
  • Request Information
    • Apply Now
No Result
View All Result
Contact Info | Request Info
Home Refinance

Consolidating Debt And Cash Out Refinance | How Much Can You Save

byNicholas Auriemma, NMLS# 1455001
4 years ago
inRefinance
Consolidating Debt and Cash Out Refinance How Much Can You Save

Consolidating Debt and Cash Out Refinance | How Much Can You Save

Are you looking for relief when it comes to credit card debt, second mortgages with higher interest rates, auto loans, or student loans? It is hard to catch up on debt for many American households. Consolidating debt by refinancing and using the equity in your mortgage can have tremendous savings.

U.S. households may carry a significantly higher interest rate on their credit cards than on their mortgage. In some cases, even cardholders end up paying a higher rate on higher balances.

Recent Case Scenario for Cash Out Refinance – Closed in 2018:

Old Mortgage Payment and Debts:

  • Principal and interest payment of mortgage: $1151.98
  • Minimum revolving debt payment: $911
  • Debt balance on all credit cards: $27,427

New Mortgage Payment and Debts:

  • New principal and interest mortgage payment: $1,161
  • Cash out amount to pay off debts: $29,316.91
  • Minimum revolving debt payment on cards after paid off: $0
  • Debt balance on all credit cards after paid off: $0

Every consolidation loan is different, but consolidating debt allowed this borrower to save $911 a month on credit card payments. It may seem as if there is no relief when paying a portion of the credit card each month and the interest keeps building up making you feel like you will never catch up. You may save even more depending on the debt.

Using the Equity in Your Home to Save Money – Cash Out Mortgage

In most cases, borrowers will notice that mortgage rates are lower than auto loans, student loans, credit cards, and other debt obligations. Depending on the type of loan, the maximum loan-to-value will vary. Calculating your loan-to-value is not difficult and is calculated by:

Loan-to-value is calculated by dividing the current mortgage balance by the approximate value of the home.

  • (Current Payoff Amount) / (Estimated Home Value) = loan-to-value.
  • This can help you estimate how much equity there is and the maximum cash out loan-to-value.

Conventional Cash Out Mortgage

  • Consolidate debt and cash refinances allow up to 80% loan-to value with no mortgage insurance for a primary residence.
  • Cash out mortgage and consolidating debt on an investment property of up to 75% loan-to-value.

There are investment refinance programs that allow you to cash out at a higher loan-to-value with no personal debt-to-income qualifications. These programs take the debt-service ratio into consideration for investment properties.

FHA Cash Out Loan

  • An FHA cash out refinance allows up to 85% loan-to-value with no pricing adjustments on the interest rates for cashing out.
  • Conventional loans often have pricing adjustment on cash out refinance.

VA Cash Out Refinance

  • The maximum loan-to-value on a debt consolidation and cash out mortgage is 100%.

Benefits of Consolidating Debt and a Cash Out Refinance

  • Defer up to two mortgage payments.
  • Possibility of lowering the overall monthly debt payments.
  • If the loan is FHA, possible FHA insurance HUD refund and lower monthly insurance.
  • May be able to have one low monthly payment with no high balances with many different accounts.
  • May get a refund of current escrow balance.

Most people have seen values in their homes go up. Borrower can use the debt consolidation and cash out refinance to eliminate mortgage insurance forever or knockout stressful debt obligations.

Share15TweetShare
Previous Post

FHA 203k Process Work Flow | Steps to a Successful FHA 203k Loan

Next Post

Delayed Financing Guidelines | Cash Buyer Delayed Financing Exception

Nicholas Auriemma, NMLS# 1455001

Nicholas Auriemma, NMLS# 1455001

Nicholas Auriemma is a Loan Originator at Nationwide Mortgage & Realty, LLC, providing information on mortgages that can often be confusing even to real estate and mortgage professionals. Borrowers can be discouraged because mortgage professionals can be mistaken due to guidelines always changing, the extent of guidelines, their company having an overlay (stricter guideline), or other lenders not offering a loan program. Call or text Nick anytime at 630-779-8430 or email at nick@nationwidemtg.net.

Related Posts

No Income Investment DSCR Cash Out Refinance

No Income Investment DSCR Cash Out Refinance

May 26, 2022
15 to 30 Year VA Cash Out Loan Up To 100% LTV

15 to 30 Year VA Cash Out Loan Up To 100% LTV

May 24, 2022

Categories

Get Pre-Approved

Start by applying to get pre-approved today.

Recent Posts

No Income Investment DSCR Cash Out Refinance

15 to 30 Year VA Cash Out Loan Up To 100% LTV

Cash Out Condotel Refinance Loan, Rate & Term, & Purchase

3 Month Bank Statement Mortgage for Self-Employed Borrowers

Is there Still a No Doc Mortgage in 2022?

Low Down Payment Jumbo Loans with No Mortgage Insurance

Request Information | Apply Now

Corporate Address:
1 TransAm Plaza Drive Suite 300
Oakbrook Terrace, IL 60181
Phone: (844) 953-0100
Fax: (630) 953-0101
Email: Info@nationwidemtg.net

Copyright 2021 © Nationwide Mortgage & Realty, LLC
Company NMLS Unique Identifier #276777.
For licensing information, go to:
www.nmlsconsumeraccess.org.
Privacy Policy | Terms of Use

Equal Housing Lender

Restrictions may apply. All loans are subject to credit, underwriting and property approval guidelines. Nationwide Mortgage & Realty, LLC is not acting on behalf of or at the direction of HUD/FHA or any government agency. CO: Check license status of your mortgage loan originator at www.dora.state.co.us/real-estate/index.htm. Also licensed in: CA, FL, IN, TN, VA, WI and TX: NMLS ID 276777. Illinois Residential Mortgage License | MB. 6760210. WA: Consumer Loan License MB-276777. GA: Georgia Residential Mortgage Licensee 60857

  • Home
  • Request Information
    • Apply Now
  • About Us
    • Career Opportunities
    • Contact Us
    • Meet the Team
  • Purchase
    • Conventional Loan
    • Condotel & Non-Warrantable
    • FHA Loan
    • FHA 203k
    • Fix & Flip
    • Investment
    • Jumbo & High Balance
    • New Construction
    • Non-QM Loans
    • USDA Loan
    • VA Purchase Loan
  • Refinance
    • Cash Out & Debt Consolidation
    • Conventional Refinance
    • Condotel & Non-Warrantable
    • FHA 203k
    • FHA Streamline Refinance
    • Investment
    • Non-QM Loans
    • Reverse Mortgage
    • VA IRRRL
  • Loan Process
    • Application Checklist
    • Credit Report
    • Home Buying Do’s and Don’ts
    • Interest Rates
    • Mortgage Calculator
  • Mortgage Blogs
No Result
View All Result

Request Information | Apply Now
Phone
: (844) 953-0100
Email:
info@nationwidemtg.net
Nationwide Mortgage & Realty, LLC
​1 TransAm Plaza Drive Suite 300
​Oakbrook Terrace, IL 60181
NMLS # 276777
Privacy Policy

Call Now Button