Debt Consolidation Refinance Loans

Do your expenses far outweigh your income? Are you currently living above your means? Do you find yourself avoiding unknown and 800 numbers in fear of collections? Then you may want to make some serious changes financially.

While understanding your spending habits and monthly income in order to make reductions as needed is a good start to overcoming debt, the ugly truth is that the debt is not going to go away until it is paid off.

Therefore, you may want to consider refinancing your home’s mortgage loan for the sole purpose of consolidating your existing debt, while interest rates remain at historical lows.

What are Debt Consolidation Refinance Loans?

Debt consolidation refinance loans provide you with the opportunity to combine those debts that are both high-interest and unsecured (any type of credit that was extended without requiring any collateral) into a new mortgage loan.

Debt Consolidation Refinance Loan Benefits

The benefits of debt consolidation are many and include the fact that your credit card balances may go back to zero, which means you will need to think twice about using your credit cards after consolidation; otherwise, you may find yourself in more debt.

Other debt consolidation benefits include lowering your interest rate, making one low monthly payment, paying less each month and deducting the interest on your taxes.* Find out if you are eligible for a debt consolidation refinance loan today.

Even if your credit is less than stellar, we can help. At Forthright Funding we have many loan options available including VA, FHA, conventional, interest-only and jumbo that will allow you to pay off your debt faster thus improving your credit score.

How Can It Make a Difference?

Here’s an example to illustrate just how much savings you can anticipate each month: Let’s say your existing mortgage is $200,000 with an interest rate of 6.25% and your credit card debt is $30,000 with an interest rate of 15% for 30 years. This means your monthly payment is $1,610.86. After refinancing, your new mortgage is $230,000 with an interest rate of 3.75% (3.973% APR). Your new monthly payment (based on a 30-year term) is $1,098.06 – which is a savings of $512.80.

This information is based on a fixed rate 30-year mortgage term, and was calculated using our own mortgage calculator, which you’re free to use. If you have any questions, please feel free to contact one of our refinance specialists at (855)351-9522.

^*Please consult with your tax advisor.