Home loans, mortgage lenders, refinance home loan, mortgage rates, mortgage refinance, debt consolidation loan

BACF Inc. Debt Consolidation Loans:

Of all the work that we do as mortgage brokers, nothing is quite as satisfying as being able to help an individual or family better manage their finances and debt burdens.

Often a simple mortgage refinance, or a slightly more complex debt consolidation loan, can drop your monthly obligations significantly. When mortgage rates are low (as they have been) a mortgage refinance loan makes great sense.

Let's face it, California is a very expensive place to live. The Bay Area, and particularly San Mateo, San Francisco, and Santa Clara Counties are among the most expensive places to live in the entire United States. For most households, keeping debt and income, equity and cash flow in balance requires careful planning. Your mortgage refinance, if done correctly, is a key part of your overall financial health.

As your mortgage broker (or mortgage lender), we see it as our ongoing responsibility to be available to help you efficiently manage the natural relationship between your debt, your income, your cash flow, and your equity.

Here is an example of how we can help:

You have a 4-year car loan, $30,000.00, with a rate of 8.5%, which would mean a monthly payment of about $740.00 per month. Expensive, right? What happens if this debt is financed by a home equity line at 8%? The payments for this same $30,000.00 drop to (interest only) payments of just $200.00 per month. Plus, the $200.00 payment is likely tax deductible interest, whereas the $740.00 car loan interest is not (usually) tax deductible. If this debt is financed as part of your first loan, as part of a mortgage refinance, with a lower rate, the savings are even greater.

Imagine the savings if your credit card debt is paid off the same way.

We have saved many of our clients hundreds, and in some cases into the thousands of dollars per month, just by applying these same techniques as part of our standard mortgage refinance analysis.

But here is the other side of the coin, and information you will not get from most of the other mortgage lenders out there:

1) Proceed with caution, because home values will not continue to increase forever.

2) Don't live off of your equity. Live within your means. Manage your expenses.

3) Consider the total cost of debt, not just the monthly obligation. In other words, that $30,000 car loan may be less expensive (on your equity line) per month, and yet, if financed over thirty years as part of your home mortgage, may represent a greater total interest obligation over the life of the mortgage. This does not make one choice good or bad, but it is something you should be aware of as you move forward. Debt consolidation loans tend to take your short term debt and move it into long term debt.

4) Proceed with caution, because interest rates will not stay low forever.

5) Find a good CPA, accountant, tax person, or financial advisor (we can help...) and don't make any major financial decisions without some careful consideration and review from trained individuals who have your best interests at heart.

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