Debt consolidation

Debt consolidation is often referred to as financing for a home equity loan, a refinance mortgage, or a second mortgage. 

These terms refer to the bank lending you money against the portion of your home that  you own. So if the bank thinks that your home is worth $500,000 and your mortgage is for $300,000, then you own $200,000 of your house. This is called your "equity". The bank may let you take out a second mortgage to use up some of this equity to pay off your debts. You would then have two mortgages: your first mortgage and a second mortgage which could be your debt consolidation loan.  To learn more about your  options, contact us about refinancing for debt consolidation.

Benefits include:

  • a single monthly payment rather than multiple payments
  • lower interest rates
  • money left over to invest