Debt Consolidation Loan for 20K, 30K, 40K For Bills
Debt Consolidation Loan for 20K, 30K, 40K For Bills – this applicant is in an unique situation in that he has several options open to him in terms of how to proceed with his debt consolidation loan. He has an existing mortgage and is looking to borrow another $25,000 for debt consolidation concerning some renovations that he has planned. His current mortgage balance is $10,097 and he only has 11 payments left until it is fully paid.
He has mentioned that he does not want to pay a lot of money in fees or interest and would like to pay off the debt consolidation loan within 5 years. Combining the mortgage and the debt consolidation he will have a total debt of $35,000 plus fees and legal costs. His credit rating is excellent and most lenders will be quite interested in providing him with a financial solution. There are several options that this client can pursue.
Whenever you are borrowing money, there are multiple approaches. If you want to keep your cash flow as low as possible, the objective will be to fine the lowest interest rate available and to stretch the payments out as long as possible. For example a 30 year mortgage will attract a low interest rate and spread the payments out over 30 years making the monthly payments fairly small. Unfortunately because it takes so long to pay the principal off, this solution will usually have the highest interest cost over the life of the mortgage.
Mortgages or debt consolidation loans that are repaid quickly will have a much higher cash flow requirement, even with a low interest rate, however they will also minimize the total interest paid over the life time of the loan since the loan is repaid relatively quickly. Consumers chose these various options for a variety of reasons depending on their income levels and the importance they attach to paying down their debt quickly.
This client can consider – a debt consolidation loan, a debt consolidation mortgage, or a open mortgage which allows him a line of credit which he can draw on when he needs funds and pay off the line of credit whenever he has extra cash.
We look forward to more discussion with this client and assisting him with which ever solution that he prefers.
Home/Mortgage Loan Amount :: $35,000
Home Loan Application and Processing Speed (when do you need the funds):: Within the next 3 weeks. My existing mortgage is due and I have a small amount of debt that I would like to consolidate as a secured debt consolidation loan
Do you currently have a mortgage? :: Yes
Bank Name and Branch ::Union Bank, Indian Canyon Drive
What City/Town, State and County do you live in? :: Palm Springs, California
What is your employment field? :: Vacation Services Industry
Employment Position :: Motel Manager and Operator
When are you paid? (monthly/weekly/biweekly):: Bi Weekly
Your credit rating to be – excellent, fair, or bad? :: excellent as far as I know
How did you find us? :: searching online for debt consolidation loans
How are you paid? (direct deposit/paper check):: direct deposit
Gross Amount Per Paycheck :: $1600
Do you agree to have this information published online, without your PRIVATE information of course? :: Sure as long as my SIN and bank information is not released
Extra information here please (some detail):: Hi I am looking for a small debt consolidation loan or mortgage for $35,000 at the lowest possible interest rate available. I have ample equity in my home and in fact my current mortgage is almost fully paid for. I think there is approximately only $10,000 left on the balance of the mortgage. I really do not want to have a new mortgage since it will be fully paid off in less than a year, however if I can obtain a better interest rate and the appraisal etc does not cost me anything then I am willing to consider it.
My preference is really a $25,000 loan that I can pay off in the next five years. With the mortgage being paid off later this year, my cash flow will end up being almost the same as it is now with only the mortgage to pay for. I am not sure which option to look at, however I would like the one that makes the most sense for me, costs the least from a fee perspective and has the lowest overall interest cost over the life of the loan.
Note to Lender ::I manage one of the local motels here in Palm Springs. I have been at this particular property for the past 5 years and really enjoy the lifestyle and the returning guests that keep coming back every year. I have full control over the property, the staff and set the rates as well. I own the property in conjunction with my wife who works at a local restaurant here in Palm Springs. Between us we pull in over $50k in income, although I only included my income on this application.
I pay myself a fixed salary from the business and prefer to plow the remaining profit back into the buildings and the business. We have an excellent reputation and hope to keep it this way.
The money I need this loan for is for some renovations that we would like to do to our own home which we have been planning for some time.
|Category: Home Mortgage Loan||APR 3.55%||APR 5.14%||APR 6.35%|
|Length of Term||15||25||30|
|Amount to be paid||$44,369.88||$57,561.47||$68,428.84|
|Total interest paid||$9,369.88||$22,561.47||$33,428.84|
|Paid per installment||$243.12||$189.24||$187.48|