Mortgage Home Equity Loans

Secured home loans ... what they are, and how to use them to your advantage to get debt relief.

Borrowing for debt consolidation requires you to commit to get your finances under control, especially tracking your spending. If you do this, we recommend you apply to qualify for home equity loans, first or second mortgage, or refinance of an existing mortgage, to consolidate your debt .

Mortgage Refinancing

If you own a home, you can mortgage it, or refinance your mortgage to obtain the equity you have, and use that money to payoff your debts. This is usually the option with the lowest interest rate allowing you to get cash out when you refinance your home mortgage

One of the options to consider on a mortgage refinance, is to restructure the term of your mortgage, and lower the interest rate, with or without obtaining additional cash from your mortgage. We were able to do this with our 30 year mortgage. We cut 6 years off the mortgage, lowered the rate and monthly payment, for a one time fee of less than $150!

Second Mortgages

Second mortgages are very much like first mortgages, except, they leave your first mortgage intact and untouched, usually have a higher rate of interest than first mortgages, and approximately the same closing costs. They are subordinate to a first mortgage, meaning in collection actions, they have a second priority after a first mortgage.

Home Equity Loans

Home equity loans work like an "open account" similar to a credit card. You may pay a slightly higher interest rate for the convenience of being able to draw the cash as you need it over time. Home equity loans are similar to Second Mortgages, and, again, are subordinate to the first mortgage on real estate.

Home equity loans act more like a line of credit. As you make payments, the principal portion of the payment is immediately available again (at then current interest rates) should you need it. Plus, they still have some of the lowest interest rates. A Home Equity Loan can help you consolidate your bills and reduce your monthly payments!

With mortgage home equity loans, you need to be disciplined when drawing on your account. You shouldn't use it to run up more debt, but only to payoff existing higher rate debt so your money management plan can breathe again.

Procedures For Mortgage Home Equity Loans

Once you apply for the home loan you prefer, your lender or mortgage broker, will prepare the necessary paperwork, do the appraisal, and set up your closing.

At the closing you, and your partner if you have one, will read and sign the paperwork, pay any fees due, or have them deducted from the proceeds, and receive the balance of the proceeds. From application to receiving the proceeds, the time can range from as little as one week online, to as long as several months locally.

Applying for a mortgage home equity loan online is quick and easy, and very convenient since you can do it from home. Most online mortgage brokers will offer a variety of lenders who will bid on your mortgage home equity loan so you can get the most competitive rates available.

Highly Recommended Resources

Check out these companies to be sure you get the best rates available:



Mortgage Refinance Loan ... lower your monthly payments and get out of debt!




Return to the top of Mortgage Home Equity Loans

Return to Debt Consolidation Loans.

Getting The Answers You Need

Be sure and check out the various debt solution reviews, tips, and articles provided on DebtSteps.com:

Find Your Solution offers a comprehensive list of reviews to get out of debt once and for all. Get answers on bankruptcy, consumer credit counseling, debt settlement, money management, budgeting, loans and mortgages.

Debt Relief Tips & Articles to guide you on your way to financial freedom. Get the lowdown on dealing with debt collectors, handling money problems, understanding your credit, and more.