Equity Loans May Be Best Option To Consolidate Credit Card Debt – Tax Advantages and Lower Payments May Apply With Mortgage Loan

Equity Loans May Be Best Option To Consolidate Credit Card Debt – Tax Advantages and Lower Payments May Apply With Mortgage Loan

Stock Photo

(Best Syndication) Many homeowners find themselves in the dilemma of too much unsecured credit card debt. The decision to refinance is not an easy one. Most people are hesitant to secure credit card balances against their home, but there are some advantages in doing so.

There are tax advantages in taking the debt from your credit cards and placing it into a home equity loan. Currently credit card interest is non-tax deductible, but interest paid on a home loan is. Always check with your tax consultant before making that decision because he is up to date on your situation and the current laws.

Before you decide on a lender, pick up the phone and call a bank. Ask them their interest rates. These rates will be dependant on your credit record of course, but it could give you a ball park figure. Start comparing these rates with your current home loan. If the rates are lower it might be a good idea to refinance your first home loan.

Check with the local credit union. Compare their rates. Take into account any fees including appraisal, points and other items. Many lenders will have dozens of packages. Assess your current situation and goals before you decide on any loan. See how your local institutions compare with rates offered online.

Online you will find mortgage calculators and graph of current rates. Plus, there are home value calculators online as well. If you are in the market for a new home, bank can also offer you a pre-approval before you shop for a home. If you are going through this loan process, it may be time to consider a new home.

Always check your credit before you apply for a new loan or credit card. There may be unexpected mistakes on it. There could be invalid addresses also. Contest any negative items on the report even if they are legitimate. You might get lucky and the creditor may not respond in time. If that happens, the negative item on your credit report will be removed.

By John Waters
Best Syndication Business Writer

Share/Save/Bookmark

      

Post to Facebook

Important: The material on Best Syndication is for informational purposes only and is not meant to be advice. Authors may have or will receive monetary compensation from the company's product/s mentioned. You should always seek professional advice before making any legal, financial or medical decisions and this website cannot substitute or replace any trained professional consultation.
Use of this site means that you agree to our TERMS OF SERVICE

Advertise On This Site
Copyright © 2006-2015 By Best Syndication All Rights Reserved