Which loan provides low interest debt consolidation?
Answer:People often consider a refinance or a second mortgage to use for debt consolidation if they are homeowners. However, you cannot be so sure that you will be able to find a low interest debt consolidation loan to use as a refi. Usually, a refinance will be a good choice only if you find a low rate loan.
If you cannot find one, perhaps you will fare best with a HELOC. Of course, a home equity loan is also an option but it usually requires that you get a lump sum to use and your interest will be calculated over the whole amount, while a HELOC can be used on revolving credit terms and the interest is accrued over what you spent, rather than over the whole credit limit.
A low rate credit card may offer you nice benefits, as well. Only keep in mind the rate will get inflated as soon as you make a late payment, and you may not be additionally informed about that.
Our advice: Be sure to ask your lender about FHA loans. FHA loans have very competitive interest rates because the loans are insured by the US Federal Government. Even if you have had serious credit problems, such as bankruptcy, it is easier to qualify for an FHA loan than a conventional loan. Also, taking an FIXED rate loan while the interest rates are still low is a smart idea. Check your eligibility here:
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