1. We have had increasing spending through the 2020 pandemic. Many homeowners have done cash out refinances to spend money on improving their property, including remodeling kitchens, baths and adding products such as solar. As we come to the end of the summer it will be a great time to consolidate the lines of credit under one new loan product as the rates come down towards the end of the year.
2. The key to fixing our finances is to ensure a solid credit history. It’s always best to focus on bringing up your fico score to get the best rates available which will help you save money. Credit can be tricky as well and if the score is on the lower end, you can use a credit repair option which we offer at Groves Capital. Our loan officers can assist you in bringing your score up within a week, no cost for this service and you’ll get a better interest rate!
3. When looking at your entire financial picture you look at your monthly liabilities like monthly mortgage, credit cards, student loans, lines of credit, auto loans or second mortgages. Creating a budget can start with consolidating your debt into your home loan. By wrapping all these liabilities into one new loan, you will have a lower monthly expenditure which will allow you to pay down debt quickly, less money wasted on interest and more savings!
Example: ● Mortgage: $450,000= $2,900 monthly @ 4.5%
● Credit Cards: $50,000= $600 monthly @ 21%
● Personal or Auto loan: $50,000= $600 monthly @ 5%
● Total monthly: $4100
● ***Consolidate all the debts into one new 30 year loan at a low interest rate in the 2’s-3’s = a payment of $2400 or so
● ***Monthly savings $1700 a month
4. When focusing on cleaning up and consolidating debt, it’s best to look at your overall debt to see if you can consolidate the high interest into your mortgage equity. The best way to see this would be to talk to a mortgage professional @grovescapital of course! We can help you structure, give you options that will put you in the best position for maximum savings, see example above!
5. The best part is that real estate values have increased dramatically thru the last 16 months which means most homeowners have increased the equity in their home which makes now the perfect time to consolidate your debt. Additionally, if you need cash out, you can take cash instead of paying off debt and use that cash to remodel, travel, new school year, buy a new car cash and more!
6. Most homeowners have outstanding debt that puts strain on their monthly spending and makes them choose between wants and needs. There is never a bad time to lower your debt and increase your credit score. When you do a cash out refi and pay off debt, it prompts your credit score to increase too! The real estate market has created the perfect timing for you and your family to get ahead of the game and be able to save more money for future needs, such as vacations, school, and retirement.
7. The best way to accomplish consolidating your debt is to work with your CPA and Mortgage professional about structuring your debt to bring it to the ideal debt ratios and bring down the rate in which you borrow money. Mortgage rates are still in the high 2’s – mid 3’s and average credit card interest rates are in the 20%+ range which makes it hard to ever pay off since you’re spending a lot of money on interest and not lowering the principal balance of the loan.
8. At Groves Capital we are focused on our clients’ needs and we are a group of high-level professionals with the focus on structuring our client loans to best benefit them in their current situation! This will help them achieve their goals and stop wasting money on high interest rates and help them focus on their future wealth and financial independence! Debt Consolidation is also good for your credit as it boosts your score when you pay off debt or lower your balance/credit limit ratios too!
9. Please call Groves Capital for a free consultation! We offer over 160 lending options, all types of mortgage products, non traditional loan options with wholesale interest rates which allows our Groves Capital family to show you we can help you have the freedom, lower stress/debt and to create the ideal situation for you and your family. We are in over 20 states with over 300 seasoned loan officers to help you secure the best deal and solution possible!
For a free consultation call 1888 -611-0998 or www.GrovesCapital.com