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using a home equity loan to pay off debt

Ready to start looking for a new home? Learn why you should consider getting a mortgage preapproval first and how you can get one.

ATLANTA – With rising home values many homeowners are finding they have a lot of equity in their homes, and there can be a temptation to dip into that money. In fact, according to a recent survey, 74.

home equity loans allow you to access value built up in your most important. But if you use an equity loan to pay off your credit cards, now the debt is secure.

Only take a home equity loan out for as much as you need to pay off your debt. The same holds true for home equity lines of credit. This resists the temptation to use excess loan funds unwisely.

Using a home equity loan to pay credit card debt may allow you to get rid of multiple payments and lock in a lower interest rate. Depending on the lender and the terms of the loan, a borrower can have funds in hand in as few as two weeks, although 30 to 45 days is more typical.

Restructure student loan debt into your parents' home equity loan for better interest. student loan debt, you may be wondering how you're going to pay it all off.

A home equity loan lets you borrow a lump sum and pay it back over a fixed term at a fixed interest rate (like a mortgage or car loan). A HELOC works more like a credit card. It makes a certain amount of credit available on an as-needed basis for a limited term, such as five or 10 years, followed by a repayment period of up to 20 years.

Using a home equity loan or line of credit to pay the debts off all at once means you’ll have just one payment each month to focus on. Since the interest rate is usually much lower with a home equity loan, more of your monthly payment is being applied to the principal.

Use a home equity loan to pay off your debt. Taking control of your credit cards, auto loans and other debts is a great feeling. Use your home equity for debt consolidation to enjoy low fixed interest and just one simple payment every month.

Consolidating that debt with a five-year home equity loan would not only allow you to pay off the debt faster, but also reduce your monthly payments to $193 and save $3,391 in interest.

interest rates for second homes The Average Interest Rates for a Second Mortgage Second Mortgage Interest Rates Rise With indebtedness. home equity Line of Credit. Lenders offer various forms of secondary financing. stand-Alone Second Mortgage Rates. Borrowers can get a second mortgage for a fixed amount.