How To Get A Consolidation Loan For $300,000
This consumer is wondering how to get a consolidation loan for $300,000. He and his wife have good jobs that not only pay well, but also have relatively good security. He is a firefighter for the city and she works for the local city government. They have a mortgage, a line of credit and debt on several credit cards.
The credit cards are charged up to the maximum. They have been paying the minimum payment for the last couple of months and incurring a great deal of interest due to the high interest charges.
Their line of credit was used to help pay for the renovations recently completed on their home. It is incurring interest at a much lower rate, however the rate is still above the competitive rates for secured mortgages.
They have an existing mortgage on their home. It too is at a low rate, but slightly above prevailing rates for mortgages. If they are able to combine all of this debt into one low interest mortgage, they stand to save several hundreds of dollars per month in interest charges alone. They feel they no longer need their line of credit and are ok with losing the flexibility that a line of credit provides.
Their home is valued above $500,000 so there is sufficient equity to support a mortgage of $300,000. They want to know the best way to find a competitive interest rate and terms for the mortgage.
As it turns out they are doing all of the right things. They are looking for quotes from several different sources. They first went to their bank and received a quote that they felt was a little higher than it should have been. Next they are applying online with several companies to see what rates will be offered.
Since they are in a good position financially i.e. credit rating, salaries etc. they should receive competitive offers for their consolidated mortgage. They should take into account the following costs when making their decision. The interest rate charged is definitly a major factor, however there are other cost areas to keep in mind.
Their home will need to be appraised to confirm its value. There is typically a charge for this, however some companies will waive this fee to get your business. Similarly, processing fees for registering the mortgage may also be written off in a competitive market. Can they make additional payments on the mortgage if they have extra cash sitting around without penalty? What are the discharge fees for the existing mortgage and who will pay these? It is important to take all of this into account before making a final decision.
Once they have all of the numbers, it is easy to make a decision. Once the consolidation mortgage is approved, the funds will be advanced and they can pay down all of their existing debt. Some lenders may require that the clients lawyer complete this step to ensure all of the money goes to where it is supposed to go.
DEFAULT LOAN APPLICATION FOR BORROWER’S INFORMATION
Home/Mortgage Loan Amount :: $300,000
Home Loan Application and Processing Speed (when do you need the funds):: within the next month or so
Do you currently have a mortgage? :: yes
Bank Name and Branch :: Fresno, E Shaw Street
What City/Town, State and County do you live in? :: Fresno, California
Zip :: 93710
What is your employment field? :: Fire Fighter
Employment Position :: Team member
When are you paid? (monthly/weekly/biweekly):: Biweekly
Your credit rating to be – excellent, fair, or bad? :: fair
How did you find us? :: looking for consolidation loans online
How are you paid? (direct deposit/paper check):: Direct deposit
Gross Amount Per Paycheck :: $3846
Do you agree to have this information published online, without your PRIVATE information of course? :: Sure
Extra information here please (some detail):: A consolidation loan of $300,000 is required to reduce my monthly payments for my credit cards, a personal line of credit and my mortgage. We have a home that has presently been assessed at over $500,000 with an existing mortgage of $225,000. This mortgage currently carries an interest rate of 5%. Today’s mortgage interest rates are lower than this and we are expecting to save some money with lower interest charges.
The real savings will come from consolidating our $50,000 credit line and also our credit cards. We have been carrying a balance on the credit cards for several months which of course means we are paying a lot of interest. One is charging 21% while the other one is 29% because it is a store credit card. These are unbelievably high rates and we need to do something about this.
The line of credit is much lower, however it is still higher than what we would pay on a consolidated mortgage. We will lose the flexibility of the line of credit by consolidating, however the money we will save will be worth it. We have renovated our home and should not be spending any more money. This was why the line of credit came in so helpful with the flexibility it provided. If we can consolidate all of this debt, our monthly payments should be less and our total interest paid should be a lot less. Can you help on how to get a consolidation loan for $300000?
Note to Lender :: I am a member of the local city fire department and love my job. Although there are a lot of risks associated with being a firefighter, I feel like I am helping the community. Especially when you save a family or rescue pets. These are especially rewarding situations. Not all of the property can be saved, but the most important is to save lives.
I have been with the fire department for over 10 years and enjoy almost every day with the guys and the rest of the team. My wife also works for the city, so our pay checks are pretty much secure. At least as secure as anything is these days. We have a good credit rating as far as we know and should have no problem qualifying for a consolidation loan.
Our question is – How do we go about obtaining a consolidation loan and how much will it cost us. We started looking on line after our local bank gave us a proposal that was a bit high from an interest rate perspective. We felt they could have done better. We are looking for a competitive rate and terms. Can you help?