Is a Debt Consolidation Loan Right For You?
by admin ~ May 10th, 2010.Thousands of homeowners have benefitted from consolidating debt with our home equity loans. As the government cracks down on subprime mortgage lending it is inevitable that home equity loan guidelines will tighten for cash out and debt consolidation loans. Consider these three steps below before taking out an equity loan to consolidate debt.
1. Determine how much unsecured credit card debt you have accumulated. Request a copy of your credit report from one of the main credit reporting agencies. You could also access it online via an online credit monitoring company like Experian or MyFICO.
2. Do you qualify to consolidate debt with a home equity loan? Contact a few different debt consolidation agencies. Review their qualification requirements. In most cases, you need to own your own home to qualify for a debt consolidation loan. Debt consolidation is a home equity loan and thus makes your mortgage payment larger. Other qualifications may include a minimum FICO score, steady employment, and a minimum monthly income.
3. How much you will save with an equity loan that consolidates your debt rather than simply making the minimum payment on your credit card debt. Always ask the mortgage company to give you a free quote.
