Do you have too many bills and can't seem to get ahead? Keep in mind that "loan consolidation" is about lowering the interest rate you are paying, not shrinking the number of people you owe. If you have to pay fees to combine your loans into one, it might end up costing you more that if you had done nothing.
A home equity loan is a popular way to combine loans and lower your interest rate. Some loan agents recommend paying off your car this way. Taking a +10% loan and replacing it with a 3% loan does save you money. The risk is if you still can't pay it off. If you don't pay off a car loan, the car gets reprocessed. If you don't pay the home equity loan, your home gets for closed on.
Refinancing your home loan is a no brainier if are lowering your interest rate by 2 or more percentage points. If you have equity, you can turn it some of it of it (not all!) into cash when you refinance. This money doesn't need to be paid back and can be used to pay off loans. An alternative idea is to take this money and improve the house!
One of the worst loans you can have is a student loan. These are real trouble if you don't pay them off. You cannot shed a student loan if you ever declare bankrupts. You can't collect social security until the loan is paid off. If you have a home and refinance to lower your interest rate, a student loan should be high on your list to pay off.
A home equity loan is not a way to spend the profit you have made on your home without selling the home. It is not like pulling money out of your savings account. You have to pay a home equity loan back with interest. If you don't keep up with the payment, you will lose the home, the biggest investment most people ever have in their life.
A home equity loan is a popular way to combine loans and lower your interest rate. Some loan agents recommend paying off your car this way. Taking a +10% loan and replacing it with a 3% loan does save you money. The risk is if you still can't pay it off. If you don't pay off a car loan, the car gets reprocessed. If you don't pay the home equity loan, your home gets for closed on.
Refinancing your home loan is a no brainier if are lowering your interest rate by 2 or more percentage points. If you have equity, you can turn it some of it of it (not all!) into cash when you refinance. This money doesn't need to be paid back and can be used to pay off loans. An alternative idea is to take this money and improve the house!
One of the worst loans you can have is a student loan. These are real trouble if you don't pay them off. You cannot shed a student loan if you ever declare bankrupts. You can't collect social security until the loan is paid off. If you have a home and refinance to lower your interest rate, a student loan should be high on your list to pay off.
A home equity loan is not a way to spend the profit you have made on your home without selling the home. It is not like pulling money out of your savings account. You have to pay a home equity loan back with interest. If you don't keep up with the payment, you will lose the home, the biggest investment most people ever have in their life.
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