Home Equity Loans

Consolidate Your Debts

If you have a home loan with a low interest and a low monthly payment, the best way to consolidate your debt is to get a second mortgage. That will give you the lowest monthly payment possible and, provided you control your credit card spending, lets you take control of your debt.

Here's What You Need To Do
Build back your equity Because you're getting a second mortgage, the amount of that mortgage represents the amount of equity you've lost in the home. But since it's not as much as your first mortgage, you should be able to rebuild that equity fast.	Get a low monthly payment If your debts are high, you need to make them more manageable by reducing the sum total of all your monthly debt payments. Ideally, all you'll have left is your first and second mortgage.

Here's What You Need To Do

Build back your equity

Because you're getting a second mortgage, the amount of that mortgage represents the amount of equity you've lost in the home. But since it's not as much as your first mortgage, you should be able to rebuild that equity fast.

Get a low monthly payment

If your debts are high, you need to make them more manageable by reducing the sum total of all your monthly debt payments. Ideally, all you'll have left is your first and second mortgage.

Here's The Type of Loan You Should Consider
15 or 20-Year, Fixed Second Mortgage If you’re borrowing more than $50,000, a 15-year, fixed second mortgage lets you build back your equity faster, at the lowest cost. You still have a monthly payment, but it is fixed and lower than your debt payments.	Balloon, Fixed Second Mortgage If you've run up more than $50,000 in debt, you won't get substantial monthly savings unless you spread the payments out over 30 years. You don't build back your equity as quickly, but you make your financial life a lot more manageable.

Here's The Type of Loan You Should Consider

15 or 20-Year, Fixed Second Mortgage

If you’re borrowing more than $50,000, a 15-year, fixed second mortgage lets you build back your equity faster, at the lowest cost. You still have a monthly payment, but it is fixed and lower than your debt payments.

Balloon, Fixed Second Mortgage

If you've run up more than $50,000 in debt, you won't get substantial monthly savings unless you spread the payments out over 30 years. You don't build back your equity as quickly, but you make your financial life a lot more manageable.