Debt Got You Down? Your Home Could Provide the Solution

By Gil Mackey
Local Lender Columnist
Apr 3, 2008
If your credit card spending has gotten the better of you it's up to you to get things back under control. Your mortgage lender could provide some much needed help.

Your San Diego Home: A Safety Net?

Some financial advisors would probably caution homeowners about tapping into home equity for the purposes of debt consolidation, but the fact is that if you need to get things under control your San Diego home could be the best solution. In most San Diego areas the median home values are well north of $400,000, and there are still some areas showing solid appreciation. This is a good sign that your San Diego home may still be holding its value--and debt consolidation, refinancing, or taking out a second mortgage could be the answer.

Debt Consolidation Facts
Taking out a debt consolidation mortgage, or refinancing your first mortgage comes with a warning: you must get your credit card spending under control. Otherwise you may be borrowing more problems. Before you borrow against your San Diego equity, consider these debt consolidation facts:

• Debt consolidation closing costs can be high, though often financed within the loan
• Many lenders will only allow you to borrow up to 80% of your home equity, though some will go as high as 125%
• Interest rates might be higher than on a conventional first mortgage

Despite these drawbacks, if you need the help your San Diego could be the best way to consolidate your debt if you have the equity. Shop around with several mortgage lenders to compare offers, make your comparison, and get your debt back under control.

Source:
DQNews

About the Author
Gil Mackey has been a writer and artist for the past twenty years. In addition to freelance writing, Gil writes for his local paper, and lives with his two children in Nevada.