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Let Mortgage Lenders in Markham Help You Consolidate Your Debt with a Home Equity Loan

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If you are drowning in multiple forms of debt, a debt consolidation loan may be a good solution for you. Mortgage lenders in Markham can provide you with information about debt consolidation programs that give borrowers a chance to reorganize their finances. Sources of financing for debt consolidation can come from personal loans, but a convenient alternative for some homeowners could be to tap into the equity they have built up in their home. Using a home equity loan for the purpose of debt consolidation has many advantages.

Advantages of Debt Consolidation Using Home Equity

Save money by using home equity for debt consolidation: Debt consolidation using your home equity can save your money and make your debt more manageable. For example, if you have $75,000 in debt spread out over three different credit cards at an interest rate of 18.9%, and you are paying four percent of the outstanding balance, it would take you 247 months to pay off this debt. This is more than 20 years, and you will be paying more than $48,000 in interest. If you have equity available in your home, there is a better solution. If you consolidate the debt into a home equity mortgage loan, you would pay a lot less in interest. The interest rates on a secured home equity loan are much less than the interest you would pay on your credit cards. Consolidating debt using home equity can save a homeowner thousands of dollars over the lifespan of the debt.
Remove stress by using home equity for debt consolidation: Through debt consolidation, a homeowner can remove the stress that multiple debts can cause by reducing these debts into one convenient monthly payment. This payment is often lower than those paid on multiple debts before consolidation since you are now using the equity you have built up in your home. A single monthly payment with a lower interest rate is likely to ease your financial burden substantially thereby reducing stress levels.
Improve credit score by using home equity for debt consolidation: By lowering your monthly payments and consolidating multiple debts into one, you are more likely to make your payments. By making payments in a timely manner and in full, you will improve your credit score. This will allow you more options with mortgage lenders in Markham for future financial needs.
Easier to obtain home equity loan for debt consolidation: Since home equity loans are secured loans, they are generally easier to obtain because they carry less risk for the lender. Mortgage lenders in Markham are typically more comfortable adding to your current mortgage with a home equity loan because they are safeguarded by the fact that your loan is secured against your home. Markham mortgage lenders will work with you to determine the amount of money you can borrow against your equity in order to consolidate your debts.
The goal of debt consolidation using home equity is to help you get the money you need to simplify your life, and most importantly to reduce your debts. If you get a home equity loan from mortgage lenders in Markham, you can take advantage of lower interest rates and ultimately put more money in your pocket.


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