$70,000 Debt Consolidation Loan in Akron Ohio
Our current client has indicated on his application that he needs a loan for $70000 which he intends to use to consolidate existing debt that he currently has. The debt is a combination of an existing mortgage, credit cards and a car loan. He also wants to borrow some money to complete a number of renovations on his home. They live in Akron, Ohio and would like to consolidate all of this into one loan or mortgage using his home as collateral.
Interest rates on unpaid balances for credit cards are very high. It makes a lot of sense to consolidate this debt into a low interest loan or mortgage. Using a mortgage and his house as collateral the client can obtain a mortgage with a low interest rate and also low monthly payments if his amortization is stretched over 25 or 30 years.
There will be a fee to appraise his home to ensure that there is sufficient equity in the home. Using his home as equity will ensure that he can borrow money at the lowest interest rates. Since he also plans to complete renovations on his home, he does not need all of the money at the present time. He may not want to take out a mortgage for the full amount at this time until he needs it for the renovations.
An alternative is to apply for a debt consolidation mortgage that is configured as a line of credit. The full amount of $70,000 could be approved and the customer would only draw on this line of credit as he needs the money. Initially he would use this line of credit to pay off his existing mortgage, the credit cards and perhaps the remaining balance on the car. This would add up to $34,000 plus the balance of the car loan, leaving the remainder to be used for the renovations on his home. He only pays interest on the current balance of the line of credit loan. The customer would be free to pay as much as he wished on the loan each month or just the interest, whichever met his cash flow.
There will be more discussion with this client concerning these thoughts before a final decision is made.
Home/Mortgage Debt consolidation Loan Amount :: $70,000
Debt Consolidation Loan Application and Processing Speed (when do you need the funds):: by the end of the month
Do you currently have a mortgage? :: yes, a small amount remaining
Bank Name and Branch :: First Merit Bank, South Main Street
What City/Town, State and County do you live in? :: Akron, Ohio
What is your employment field? :: Sales for a major equipment manufacturer
Employment Position :: Regional Sales Manager
When are you paid? (monthly/weekly/biweekly):: bi-weekly
Your credit rating to be – excellent, fair, or bad? :: excellent
How did you find us? :: searching online using Google
How are you paid? (direct deposit/paper check):: direct deposit
Gross Amount Per Paycheck :: $4,230
Do you agree to have this information published online, without your PRIVATE information of course? ::yes no personal information disclosure please
Extra information here please (some detail):: we have a number of credit cards which we have charged up to their maximum value, plus we have a small amount left on our mortgage and we have a year left on a car loan. The mortgage has $15000 on it remaining, the credit cards have in total about $19,000 charged to them and we would like to do some renovations as well around our home. We thought that we would consolidate these existing debts plus the money we would need to complete the renovations all into one mortgage to keep the payments low and manageable.
We could delay the renovations and just focus on repaying the credit card debt and the car loan, however we did not want to wait. Our daughter is getting married in two years time and we wanted to spruce up our home in preparation for the wedding. We are planning on a new kitchen, replacing the rugs with hardwood floors and updating the bathrooms. We are going to spend a little bit of money as well on the landscaping too. All of this needs to be completed in time for the wedding. A debt consolidation loan seems like the best answer to us at the moment, unless you have other suggestions.
Note to Lender :: we live in Akron, Ohio and I work for a major equipment manufacturer in the area. I am the regional sales manager and cover the entire state of Ohio for our company. I am on the road a lot and have a company car. The car we still have a loan for is a personal car that my wife uses.
I have been with the company for the past 6 years and have received a sales bonus every year. I make a very good salary. My wife works as well locally in Akron. We did not include her income in the monthly income estimate on the application. Our credit rating should be excellent. We have never missed a payment on any utilities, mortgage or credit card bills or loans.
We also have savings certificates; however they are locked in and also have interest income that is slightly better than the current mortgage rates. We would prefer not to use this money for the debts we have.
Your help in reviewing and approving the debt consolidation loan would be appreciated and any suggestions regarding the debt consolidation loan as well.
|Category: Home Mortgage Loan||APR 2.587%||APR 3.131%||APR 3.001%|
|Length of Term||15||25||30|
|Amount to be paid||$83,656.27||$97,486.36||$101,596.83|
|Total interest paid||$13,656.27||$27,486.36||$31,596.83|
|Paid per installment||$458.39||$320.50||$278.35|