Loan Options For Consolidating Debt

Consumer debt accrues when people purchase goods and services on credit and pay for it later with credit cards, loans, and mortgages. Consumer debt is at an all time high in the United States, resulting in numerous consumers searching for ways to minimize and consolidate their debt. Fortunately, there are several loan options available to help people in debt strengthen their financial situation. If you are located in West Palm Beach, St. Pierce, or Tampa Bay, Florida, and have questions about your debt consolidation options, CTC Mortgage is here to help. Continue reading to learn more about loan options that can help you consolidate your debt.

Home Equity Line Of Credit (HELOC)

One option to help borrowers consolidate their debt is a home equity line of credit, or HELOC. A HELOC allows a homeowner to borrow money while using their home equity as collateral. A home equity line of credit can basically be used similarly to a credit card because it allows a borrower to borrow as much money as needed up to a certain limit and over a specific term. It can be used to pay for mostly anything, including paying off debt, higher education, home renovations, investments, etc.

Closed End Second Mortgage

A closed end second mortgage can also help borrowers minimize their debt. This type of mortgage allows a homeowner to borrow a lump sum by tapping into their home equity without impacting their original loan. In a closed end second mortgage, a lender provides financing to a borrower, and then the borrower repays the mortgage back in monthly payments. They can offer fixed rates and predictable payments, helping a borrower budget and then consolidate their current debt.

Reverse Mortgage HECM

Another option that can help borrowers organize their finances to consolidate debt is a home equity conversion mortgage, or HECM reverse mortgage. This loan option is a type of reverse mortgage and is specifically intended to help people over the age of 62 convert their home equity into funds they can spend. In an HECM, funds are given to a borrower against the equity of their home. While interest rates accrue on the outstanding balance of the loan, no loan payments are required by the borrower unless the home is sold, or if the borrower moves or passes away. The money from the loan can then be used in any way the borrower wishes, including consolidating debt.

Getting Assistance Consolidating Debt With A Loan

There are so many options when it comes to consolidating debt. If you are located in the areas of West Palm Beach, St. Pierce, or Tampa Bay, Florida, and have questions about using loan options to help your financial planning, contact CTC Mortgage today for a consultation.

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