| |
 The
process of combining a new refinance loan with debt consolidation can
be one of the smartest, and most rewarding financial tools available to
homeowners.
How
Does Debt Consolidation Work?
Here's an example;
If the current Appraised Value of a home is $200,000 and the principal
balance is $100,000 the difference of $100,000 is the equity balance.
(Note; in order to avoid required PMI, or Mortgage Insurance, a 20% equity
position must remain). Therefore we can reduce the $200,000 appraised
value by 20% thereby reducing the "usable value" to $160,000.
The difference between the usable value (160,000) and the principal balance
(100,000) is, of course, $60,000 -- this amount can be used to pay off
almost any other existing loan including
2ND
Mortgages
High
Interest Credit Cards
Pool
Loans
Personal
Loans
Student
Loans
Medical
Bills
Car
Loans
Boat
Loans
Furniture
Loans...
...and much
more!
Equity can also
be " Cashed Out " from a refinance loan and used in full or
in part for home improvement, or even deposited into 401k investments,
or stocks/money market funds.
Some of the
key advantages associated with Debt Consolidation;
Paying
off high interest rate credit cards.
One
loan, with one low monthly payment.
In most
cases, interest portion of mortgage payments may be deductible.
....We strongly advise you to check with
your tax advisor.
2ND
Mortgages can be rolled into the reduced rate 1ST Mortgage.
There
are no significant drawbacks to Consolidating Debt, or cashing out equity.
However, it should be noted that a considerable amount of equity is necessary
to maximize the potential benefits and savings.
Following Are Two Samples
Of Debt Consolidation Results:
EXAMPLE #1;
| TYPE |
BALANCE |
|
PAYMENT |
| Mortgage
Loan @ 8% |
$
100,000 |
P&I |
$
734 |
| VISA
Card |
$
7,538 |
----
|
$
266 |
| Master
Card |
$
2,300 |
----
|
$
92 |
| Furniture
Loan |
$
3,700 |
----
|
$
115 |
| Discover
Card |
$
1,723 |
----
|
$
51 |
| Totals |
$115,261 |
--- |
$ 1,258 |
Debt
Consolidation Results
| TYPE |
BALANCE |
|
PAYMENT |
| Mortgage
Loan @ 7% |
$
115,300 |
P&I
|
$767 |
| Visa
Card |
$
000 |
----
|
$
000 |
| Master
Card |
$
000 |
----
|
$
000 |
| Furniture
Loan |
$
000 |
----
|
$
000 |
| Discover
Card |
$
000 |
----
|
$
000 |
*****TOTAL
SAVINGS***** $ 491
Per Month!!! *****
EXAMPLE
#2;
| TYPE |
BALANCE |
|
PAYMENT |
| Mortgage Loan 250% |
$ 100,000 |
P&I |
$ 751 |
| Second Mortgage
@ 10% |
$ 32,000 |
---- |
$ 280 |
| Home Depot |
$ 4,198 |
---- |
$125 |
| Discover Card |
$ 3,957 |
---- |
$118 |
| Walmart |
$ 1,638 |
---- |
$55 |
| Car Loan (Balance) |
$ 18,207 |
---- |
$375 |
Debt
Consolidation Results
| TYPE |
BALANCE |
|
PAYMENTS |
| Mortgage
Loan@ 6.875% |
$ 160,000 |
P&I
|
$ 1,051 |
| Second Mortgage |
$ 000 |
---- |
$ 000 |
| Home Depot
|
$ 000 |
---- |
$ 000 |
| Discover
Card |
$ 000 |
---- |
$ 000 |
| Walmart |
$ 000 |
---- |
$ 000 |
| Car Loan
(balance) |
$ 000 |
---- |
$ 000 |
| NEW
Totals |
$160,000 |
|
$1,051 |
*****TOTAL
SAVINGS***** $ 653 Per Month!!! *****
|
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|
Need
More Information ?
Then give us a call at 310-576-6222 .
Speak with one of our courteous and professional Mortgage
Specialists, or to send us an Email inquiry.
Thank You in advance for your interest. |
Interwest Financial Group, Inc.
1434 6th Street, Ste. 1, Santa Monica, CA 90401
Phone: 310-576-6222 Fax: 310-576-6223
©
2002
Interwest Financial Group, Inc.
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