There are many reasons why you may want to consolidate debt.
We will discuss a few below.
Pay off Credit Card Debt
- Credit cards usually have higher interest rates
- They are generally not tax deductible
- Consolidate into one easy monthly payment
- The interest on your new mortgage may be tax deductible. Be sure to check with your accountant.
Payoff Home Equity Line of Credit (HELOC)
- HELOC rates are generally adjustable and can change
- Replace with a fixed rate first mortgage
- Removes future volatility in times of rising interest rates
HECM Line of Credit (Reverse Mortgage Loan)
- For clients 62 or older
- Pay off current HELOC where interest only period is ending
- Avoid the sticker shot of a higher payment on the horizon
- Let home make your payments
- Qualify for more borrowing power – tax free
- Learn more about reverse mortgage loans