SECOND MORTGAGE PROGRAMS:

Debt Consolidation Loans

Reducing Your Payments
Debt consolidation of your high interest credit cards and other debts into one lower payment could save you hundreds or even thousands of dollars each month. Using a home equity loan or second mortgage to reduce your debts can be a practical way to relieve the burden of payments that seem to have never-ending balances. Compare the monthly payment for the new loan to your existing monthly debt payments to see if it makes sense. Also consider the break-even period by dividing the monthly savings into the total closing costs.

Tax Savings
The interest portion of a home equity loan or second mortgage may be tax deductible up to a $100,000 loan amount. Check with your tax advisor for current details. The tax savings from a debt consolidation loan can be substantial when compared to non-deductible monthly debts.

Simple Interest Savings
A home equity loan is a fully amortized, simple interest, fixed rate second mortgage. There is no change in the terms, or the payment of your existing first mortgage. You will pay less on a simple interest loan when compared to credit cards with daily compounded interest. It is estimated that over a long term, you could pay up to three times more on credit cards with compound interest, than you would on a fixed rate, simple interest loan.

Loan Terms
You have the option of using all, or part of your new loan for debt consolidation. You can also use part of your loan to make home improvements, or receive cash for personal use. Loan programs offer a choice of terms from 5 to 25 years. The minimum loan amount is $15,000.

No Equity Required
There is no equity required for a home equity loan or second mortgage. Financing is available up to 125% loan to value. Your home is eligible for a loan, even if the first mortgage is the same as the home's value.