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| Suggested
Tips for Your Home Equity |
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How
can I consolidate my debts and save?
Good question.
Our
recommendation:
Reduce your interest rate charges by
consolidating all of your outstanding
debts using your home equity loan.
Your home equity loan can
be used as a "Debt Consolidator"
to pay off the following accounts:
- credit card balances
- department store balances
- gas card balances
- installment loans
- auto loans
- any account balance that is outstanding.
Home equity loans generally have a much
lower interest rate than most credit cards
and other unsecured loans.
You can set the repayment term at a FIXED
rate so that you can plan exactly how
much to budget each month. Also save time
and hassle by writing just one monthly
check.
Another added
benefit.
Potential Tax savings.
Since your home equity loan is secured
by a mortgage lien on your home, the interest
you pay is considered mortgage interest
and may be tax-deductible. Speak with your tax advisor
to see if you qualify for the mortgage tax deduction.
Now that's smart financial
management!
Use our Debt
Consolidation Worksheet to estimate
how much you can save.
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Tailor
a payment plan that fits your budget
With most home equity loans, you can
setup a repayment plan that fits your
budget.
If your consolidated balances are high,
set a repayment plan that is longer. It
will reduce your monthly payment so that
you can budget for other important living
expenses.
If your consolidated balances are low,
you may want a shorter repayment period.
Most home equity loans
have the following repayment terms:
- up to 5- years
- up to 10- years
- up to 15- years
- up to 20-years
Compare your monthly payments among several
different repayment plans. Select the
plan that fits your current budget.
For example, the
table below illustrates the different
minimum monthly payments for the consolidated
amount of $35,000 at the FIXED equity
loan rate of 7.50%:
Please note: this is an
example only. Interest
rate and minimum payment may be different
at the time you close your home equity
application.
| Consolidate
Balance: |
$35,000 |
| FIXED
Interest Rate: |
7.50%* |
| Monthly
Repayment Plan |
|
| 5-year
Repayment Plan |
$701.33 |
| 10-year
Repayment Plan |
$415.46 |
| 15-year
Repayment Plan |
$324.45 |
| 20-year
Repayment Plan |
$281.96 |
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You may select a longer term to start
with. When circumstances
allow, pay more than the minimum monthly
payment to reduce your loan faster.
But when finances get tight, it's nice
to have a lower monthly payment to manage
through tough times.
That is the flexibility
you need.
Use our term
comparison calculator to run the numbers.
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Time
to consolidate high rate credit cards
The holiday or vacation season is ending
and guess what's coming in the mail?
Your credit card bills.
You know that carrying a balance on your
credit cards can add up to heft interest
rate charges of 18% or more.
You're smarter
than that.
That is why you plan
to consolidate all of your outstanding
credit card balances using your home equity
loan.
Your home equity loan carries
a much lower interest rate than most credit
cards and other loans. And any interest
you pay may be tax deductible. Speak with
your tax advisor to see if you qualify for the mortgage tax deduction.
Use our Debt
Consolidation Worksheet to estimate
your potential savings each month.
Additional
Sources:
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You can have the flexibility of a credit
line that lets you consolidate your account
balances now, and remodel your kitchen
in a couple of months.
You never know when
you need extra cash
That's
why you should view an equity line of
credit for consolidating your debts.
With your "Debt
Consolidator" Credit Line,
you can consolidate your accounts
now and then later, if you need to:
- add an addition to your house
- finance a new car or truck
- send your kids to college
- start a new home business
- other ________________
We call that smart
financial management.
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Your home equity product can save you
money since your equity loan is secured
by a mortgage lien on your home.
The interest you pay is considered mortgage
interest and is tax-deductible for some
taxpayers. Speak with your tax advisor
to see if you qualify for the mortgage tax deduction.
How much can
you save?
That depends on your income bracket
and annual percentage rate. But by the
time you deduct qualifying interest
payments from your taxes, your effective
APR will be significantly lowered.
Compare this lower rate to the current
interest rate you pay for credit cards,
car loans, and other installment loans
that do not qualify for tax deductibility.
You can see why your
"Debt Consolidator" Home Equity
Loan is a smart way
to consolidate
loan balances, send your child to college,
and finance trips or home improvements.
The deductibility of qualifying interest
can reduce the cost of your loan making
your home equity loan a smart tool for
consolidating account balances.
Additional
Sources:
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