For homeowners who have benefited from the recent boom in home values there are ways to make your home’s value directly translate into you saving money. Today, many are taking advantage of low interest rate home equity lines of credit with the specific purpose of bill consolidation. Bill consolidation makes it so you only have to make a single payment each month, in this case to your home equity line.
Because a home equity line of credit can be paid off over many, many years, the monthly payment is less than your total previous payments. Combine this with the low interest rates on home equity lines and your savings are compounded even further. If you are a homeowner who is also carrying many other debts, a home equity line for bill consolidation may be right for you. First, determine how much equity you have in your home. This will depend on how long you have owned your home and how much you pay towards your principal mortgage. You can get an accurate portrayal of your home equity by speaking with a mortgage specialist. After looking at other home sales in your area you can see the going rate for a house in your neighborhood. Then, you can subtract your mortgage balance from that and the remainder equals the amount of home equity you have.
Now, consult a professional to see how much bill consolidation this home equity can get you. You may be able to pay off some of your bills and even all of them. You will never know exactly how much until you get started. So stop waiting and start saving.
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