The process of combining a new refinance loan with debt consolidation can be one of the smartest and most rewarding tools available homeowners!

How Does Debt Consolidation Work?

Here's an example; If the current Appraised Value of a home is $200,000 and the principal balance is $100,000 the difference of $100,000 is the equity balance. (Note; in order to avoid required PMI, or Mortgage Insurance, a 20% equity position must remain). Therefore we can reduce the $200,000 appraised value by 20% thereby reducing the "usable value" to $160,000. The difference between the usable value (160,000) and the principal balance (100,000) is, of course, $60,000 -- this amount can be used to pay off almost any other existing loan including

		2ND Mortgages
		High Interest Credit Cards
		Pool Loans
		Personal Loans
		Student Loans
		Medical Bills
		Car Loans
		Boat Loans
		Furniture Loans...

...and much more!

Equity can also be " Cashed Out " from a refinance loan and used in full or in part for home improvement, or even deposited into 401k investments, or stocks/money market funds.

Some of the key advantages associated with Debt Consolidation:

		Paying off high interest rate credit cards.
		One loan, with one low monthly payment.
		Interest portion of mortgage payments are tax deductible.
		2ND Mortgages can be rolled into the reduced rate 1ST Mortgage.

There are no significant drawbacks to Consolidating Debt, or cashing out equity. However, it should be noted that a considerable amount of equity is necessary to maximize the potential benefits and savings.