If you are looking for a way to package all of your bills into one convenient payment, your house may hold the key. By using the equity you already have in your home, consolidating might help you save on interest and get you out of debt more quickly.
Home equity is the estimated value of your home minus what you owe on the mortgage. For example, if you own a home that is currently valued at $200,000 and you have $125,000 on the principal left to pay off, your home’s equity is worth $75,000.
Excluding home mortgages, the typical American household averages roughly $15,000 in debt—$10,000 of which comes from credit cards. Add to that the fact that the average consumer credit card rate is currently a little over 14% APR. That’s a lot of money going straight to interest payments—and not one cent of it is tax deductible.
A home equity loan, on the other hand, can offer some tax breaks for you. It provides you with a specific amount of money, at a fixed rate of interest for a specific amount of time. And considering that home loan refinance rates can be less than half that of credit cards, you can save money right away and can continue to save money over time.
Is a home equity loan right for you? Visit www.broncofcu.com. Under the Mortgage Rates section, you’ll see what our current rates are for 15-year, 10-year and 5-year fixed loans. If you look under the Mortgage Rate banner on this page, you’ll see highlighted text that says “Mortgage Bot.” If you click on that, you’ll be directed to our Mortgage Resource Center.
On the Mortgage Resource Center Page, you’ll see a section called Resources. If you click on that, it will take you to another page where you’ll find Calculators listed in the six gray boxes toward the top of the page. By clicking on that, you’ll see a number of different calculators that are available. Click on the bottom option, “Should I consider consolidating my debt with a home equity loan?” This will allow you to enter your credit card balances and rates, and other monthly payments such as auto, boat or RV and educational loans. Then you can enter the loan rates and terms from your home equity loan to see how much money you’ll be able to save on a monthly basis.
Of course, if you prefer to have a Bronco Loan Specialist walk you through the process, feel free to stop by our nearest office and we’ll be happy to discuss all of the options available. Once you’ve decided which plan best suits your needs, we’ll help you fill out the necessary paperwork.
Because of Bronco’s sound financial position and well-managed balance sheet, we have money to lend. And we can help you find the best way to help you reach your financial goals. Stop in and see us or give us a call at 757.569.6000.
