| If you’re like many Americans, you are looking for | | | | 3) How long it will take you to pay it off – known as |
| ways to manage your debt and save money in a way | | | | the "term" of the loan |
| that fits your lifestyle – and debt consolidation may | | | | Still trying to understand the basics and don’t know |
| be the answer. Whether you’re paying off credit | | | | where to start? A home equity loan calculator can be |
| card debt, working on home improvements or simply | | | | very helpful in finding out how much you can afford to |
| need some extra cash in your pocket for the ultimate | | | | borrow by helping you assess your income, current |
| vacation, there’s no better time to learn all you can | | | | debt situation and loan information. Companies like |
| about debt consolidation through mortgage refinancing | | | | Bank of America offer online resources such |
| and home equity loans and lines of credit. | | | | calculators and dedicated staff you can talk to |
| Debt Consolidation | | | | immediately about home equity loans. |
| If you’re worried about being denied a loan due to | | | | Mortgage Refinance |
| less than perfect credit, debt consolidation might be the | | | | Simply put, a mortgage is a loan with a fixed or |
| way to go. By combining multiple loans into one single | | | | adjustable interest rate which you pay back to the |
| loan, you not only have a limited amount to pay each | | | | bank or financial institution on a monthly basis. As the |
| month, but the repayment period is longer. Debt | | | | need for cash or debt consolidation arises, it is it is |
| consolidation improves your overall credit score by | | | | possible to do a mortgage refinance at a lower rate. |
| rolling all your unsecured debt into one easy secured | | | | This can also reduce your monthly payments. |
| loan, eliminating those credit "blemishes" you have | | | | Use a mortgage refinance calculator to determine how |
| accrued in the past. This makes it much easier to get | | | | much you can afford and whether you will be able to |
| approved for a home equity loan or line, mortgage | | | | pay the lender back. At bankofamerica.com, you’ll |
| refinancing or cash-out refinancing. | | | | find plenty of information about getting more cash out |
| Home Equity Loans and Lines | | | | of your home, lowering payments through mortgage |
| Home equity loans and lines are often referred to as | | | | refinance and how this relates to debt consolidation. |
| second mortgages, but can be in either 1st or 2nd | | | | Cash-out Refinance |
| mortgage position. By tapping into your home’s | | | | Similar to a home equity loan or line, cash-out refinance |
| equity, you can get the extra cash you need. As a | | | | is an option which allows you to borrow your equity |
| bonus, the interest rate on these types of loans is | | | | and gain extra cash – so you can pay off your bills |
| usually lower – and tax deductible. | | | | and make just one simple payment each month. Thus, |
| When you’re choosing a home equity loan or line | | | | you can replace your current mortgage with a new |
| of credit to help with debt consolidation, you should | | | | mortgage for a higher balance, borrowing against the |
| understand that standard home equity loans offer a | | | | value of your home. The main difference between this |
| fixed dollar amount, paid out at the beginning of the | | | | and a home equity loan or line is that with cash-out |
| loan, while home equity lines of credit offer flexible | | | | refinancing, you only repay one loan – your new |
| funds you can access as needed. | | | | mortgage. |
| The three facets of a home loan are: | | | | With the right information, tools and advice, you can |
| 1) How much money you need to borrow or the | | | | take control of your debt. So pack up the bag with |
| “size” of the loan | | | | text books, call the interior decorator or start planning |
| 2) The percentage rate you pay on the particular loan | | | | that trip to Hawaii, because you’re well on your |
| – which is called the "interest rate" | | | | way to financial peace of mind. |