Paying off debt through a home equity loan is a great way to reduce your overall monthly debt obligations. A home equity loan will payoff your existing loan and payoff the debt or give you the cash in hand to make the payments direct. The State of Texas allows a maximum loan of 80% of the appraisal value of your home. Lets review some of the details.
Advantages of Paying off Debt
- Your mortgage probably has a lower interest rate than your credit card
- Lower monthly payments when consolidated
- Frees up credit
- Tax deductible advantages
- Consolidate debt and raise your credit scores
Disadvantages of Paying off Debt
- Adding money to your existing loan balance
- Paying off debt then racking it back up
Depending on the exact debt your paying off from credit cards, medical bills, delinquent loans, or student loans it’s a great way to consolidate at a low interest rate. We will help review your loan scenario and determine the right course of action for your situation. Paying off debt when used correctly will help free the stress and burdens and allow you to save money. Our goal is to breakdown your finances and present options that put you in the driver’s seat into the future.
For more information about paying off debt, the benefits and loan options and how it may apply to you, please contact us direct at 281-627-4222 or submit the quick quote form on this page.