Consolidate debts with a refinanced mortgage?

How high are the debts

How high are the debts

Since there are such high debts, the interest rate is also usually high, you can spend $ 1000 per month in interest only.

The fact of having bought one living around 10 years ago would be considered as an example.

Where on that occasion the house costs a total of $ 100,000 with a 30-year fixed-rate mortgage.

Currently, that same house costs $ 175,000. He left a 20% discount at the time it was purchased.

Now he owes approximately $ 70,000. Therefore, the total capital is $ 125,000.

Less than $ 12,000 to $ 15,000 in real estate agent fees and transfer taxes that would be incurred when selling.

Obviously with this amount of money you would pay all your debts.

However, the question would be: Should you refinance your home with a mortgage to pay off the debt?

Should you refinance the entire loan at a lower interest rate, reducing your monthly payment and extracting money beyond what is necessary to pay off your debt?

These are the steps you must follow to determine the best financial path to take in such a situation.

What are the interest rates on current debts?

What are the interest rates on current debts?

There are two main factors that determine the interest rates of your debt: your credit record and whether the debt is safe or not.

We can say that mortgages and car loans generally have interest rates ranging from 2 to 4%.

On the contrary, a personal loan from a bank or a credit card could have an interest rate of up to 25%.

In general, the lower your credit score, the higher your interest rates for any type of loan.

What debts should I refinance?

What debts should I refinance?

If you lose your job or apply for a refinance loan that you cannot pay, you are likely to lose your home.

Instead, you could declare bankruptcy due to excessive personal debt. Why could I declare it that way?

You can do this because, in most states, the law allows you to protect part of a principal residence by filing bankruptcy.

As a rule, you should not refinance the debt that you can declare bankruptcy so as not to lose a mortgage.

What type of mortgage should I refinance?

What type of mortgage should I refinance?

15-year mortgages will have interest rates that are between half and 1% lower than 30-year mortgages.

Because the repayment period is faster and reduces the risk to the bank.

15-year loans should only be taken if:

  • You can pay the highest payment
  • The extra money that is being immobilized is not necessary for anything else.

In conclusion, a plan to consolidate the debt with a refinanced mortgage seems like a good idea.

Loan for low earners – Apply now!

Especially people whose income is average or only below average often need help with a loan. But banks and other financial service providers, in particular, put large obstacles in their way when they want a loan. Anyone who needs a loan for low-income earners must be able to present convincing arguments or be satisfied with only a small sum.

The lack of creditworthiness: the big problem with loans for low-income earners

The lack of creditworthiness: the big problem with loans for low-income earners

A loan check usually consists of two parts. Cream Banks check the entry in the protection association for general credit protection (Credit Bureau) to make sure that there are no old debts that are too high and that the debtor’s payment behavior is correct. They also test their creditworthiness.

This word describes the borrower’s credit repayment ability. While the Credit Bureau entry is usually fine even for a small earner, there are often problems with creditworthiness, because the larger the loan amount, the more difficult it is to prove that he can actually repay it. Because of his low income, he lacks the means to pay the monthly bills and repay the installments.

The common approach

The common approach

However, a loan for low-income earners is not impossible. Instead, the borrower must practice a virtue that the banks require from many customers who want a loan: he must be satisfied with a small loan and often also have to accept a long term. The lower the loan, the greater the chance that the applicant will be able to repay the amount despite his low income. It only becomes problematic if a small loan is not sufficient to do justice to the reason why the small earner wanted to take out the loan.

A bigger loan for low earners

A bigger loan for low earners

But even a larger loan for small earners is not entirely impossible, but can be granted under certain conditions. A co-applicant is usually required by the banks. This means that the borrower does not apply for the loan alone, but together with his spouse, for example. Ideally, the co-applicant has a high salary and thus compensates for the greatest weakness of the actual borrower. As an alternative to the co-applicant, he can also present a guarantor.

The difference is that in this case, not both people formally apply for the loan, but the guarantor is only a form of substitute. He signs a binding declaration that he will ensure the repayment of the loan should the actual applicant not do so in the To be able to do. In this case, too, it is an advantage if the guarantor has the highest possible income, because the bank makes the amount of the loan that it grants largely dependent on its income.

Loans to civil servants | How do they work?

Officials are often said to be fairly cozy and quiet contemporaries, who have little stress at work, have a good income and are practically irrevocable. Then retire at some point, receive a full pension and can enjoy the end of your life to the fullest.

Certain of these characteristics and allegations certainly apply to many officials. Others are more from the area of ‚Äč‚Äčlegends and fairy tales. What is true, however, is the fact that civil servants have excellent borrowing opportunities due to their special professional status. Because with their permanent and really almost permanent employment they bring with them a very important security for borrowing. And banks like to honor this with particularly cheap offers.

What are government loans and how do they work?

What are government loans and how do they work?

Official loans offer particularly favorable conditions which – as the name incorrectly suggests – are not only accessible to civil servants. Academics or civil servants can also benefit from such loans and the associated favorable conditions. The reason for these special conditions is job security. It reduces the risk of default on repayment and allows the banking houses. To provide not only low interest rates, but also particularly high loan amounts in combination with very long terms. So whoever can take out loans for civil servants has drawn a lot in the eyes of many other consumers.

Many professional groups benefit

Many professional groups benefit

Police officers, teachers, civil servants, professional soldiers, judges, postal officials, judicial officers and even retirees can benefit from a civil servant loan. You enjoy the multiple protection that comes with such a loan. This means that the monthly installments that must be paid after the loan is taken out are not simply added to the loan. Rather, they are saved in a life insurance or pension policy. Only the interest that has to be paid flows into the loan. The insurance is only terminated at the end of the term and the money saved in it is added to the loan. If the insurance company was able to generate a surplus, it does not flow into the loans for civil servants, but is paid out to the borrowers. So it may well be that as a borrower you can also earn money with the loan. The insurance also provides financial security for the family in the event of the borrower’s death.

Where can official government loans be taken out?

Where can official government loans be taken out?

Officials are offered the same range of credit as any other consumer. Only on much better terms. Therefore, a loan for a consumer can always be taken out at any bank or savings bank. In addition, however, there are also special civil servant banks that deal exclusively with the interests of this professional group and have the appropriate loans. A comparison should be used to find out where the loan is taken out. Because even with these cheap offers, it is worthwhile to carry out a comparison before borrowing.

Loans are offered to civil servants, which can be up to 24 times their net income. The term can be over 20 years. Additional safeguards such as a surety are only necessary in a few cases. However, it is important that the Credit Bureau fits. If this is negative, an official will not get a loan from a bank in Germany. Official status must be demonstrated when applying. Trial officers receive separate loan offers that are adapted to their current situation and take into account that the civil service has not yet been fully completed.

By the way: Officials can also take advantage of debt restructuring. This is particularly worthwhile for very large loans that have a very long term. It is important that the loan provides for the possibility of debt restructuring and that there are no fees for this. This must be explicitly stated in the loan agreement so that there are no inconsistencies and unpleasant surprises when rescheduling is planned.

Loan can be taken out easily despite debt

 

Debt is a very uncomfortable thing. Above all, if you have not brought them about on purpose and they still have a negative impact on life. Because, as the popular saying goes, they are not a “trivial offense” and must therefore be cleaned up.

While one consumer completely relies on the state and goes into consumer bankruptcy to simply shake off the debt after six years, the other consumer invests a little more power. He doesn’t just want to give up and try to save what can be saved. Alone to show the creditors that he doesn’t care whether they have to give up their money or not.

In order to be able to reduce the debt in some way, it is important that it is not only determined, but also summarized. The best way to do this, of course, is with a loan that turns many creditors into one. But is a loan actually feasible despite debt?

The type of debt decides

The type of debt decides

Whether a loan can be taken out easily despite debt or whether there are detours that need to be taken depends entirely on what debt is burdensome to the borrower. If it is small liabilities that have not yet had a negative impact on Credit Bureau, but could do so in the near future, it should not be a big problem to find a good loan offer. Because as long as the Credit Bureau is positive and the income is good, almost all doors are open to the borrower. Even when looking for a loan with debt. In such a case, we always recommend an installment loan, in which it is not necessary to state what the money is needed for. The lending bank therefore does not have to be informed that there are debts and that these are to be repaid with the help of the loan.

However, if the debt has been known for some time and has already arrived in Credit Bureau, this naturally makes it difficult to borrow. Because then you can’t just take out a loan from any bank. In Germany, banks do not grant credit to consumers who have negative credit.

In the case of a loan despite debts that have already left their mark on the Credit Bureau, it must therefore be ensured that a second borrower accompanies the borrowing. If this cannot be found, you must look for a foreign loan. This is available from various banks in Liechtenstein, which can be easily reached via the Internet. A stay abroad is therefore not necessary.

What should be considered when looking for a loan despite debt?

What should be considered when looking for a loan despite debt?

A loan in spite of debt is only worthwhile if it can really make a difference. It is not worth taking out a loan if there are only more debts in the end. It is also important that the money is used for debt settlement and is not used up otherwise. Those who are in debt should always live very sparingly and reduce personal needs as much as possible. If the bank notices that the loan has been taken out, although it was known that there are debts that cannot be regulated, this could be regarded as fraud and reported. And probably nobody wants this.

By the way: Even credit intermediaries or so-called financial experts cannot do magic and cannot obtain credit if the debt situation has been completely resolved. It is better to go to a debt counselor in such a situation than to believe dubious statements from even more dubious intermediaries who end up producing no credit and only cost money.

Credit for teachers and teaching professionals

The credit for teachers – the benefits of public service.

The credit for teachers - the benefits of public service.

Processing the application for a teacher loan is a pleasant task for every clerk. The teaching profession offers optimal conditions for credit approval of almost any normal size. Various advantages come together. The biggest individual advantage is of course the employer. Father State always pays on time. There is no risk of bankruptcy, which threatens every employer in the free economy. In addition, most of the teachers are civil servants. The risk of losing your job is therefore also excluded.

Even in the event of illness or early retirement, existence is never at stake for teachers. The state always ensures that as far as possible all life risks, which also represent a credit risk, are secured in a compatible manner. In addition to the general advantages of the public service, a teacher is also paid fairly. There are basically no problems with overcoming the garnishment limit with a loan for teachers. No teacher becomes rich through his income. Nevertheless, it is, with the safest payment, to be located in the upper range of the social midfield. This creates ideal conditions for long-term lending.

Teachers are spoiled for choice with providers.

Teachers are spoiled for choice with providers.

If you have such good conditions for a loan, the doors of all providers are practically open. Local providers, as well as direct banks and special providers, lure with special offers. Every provider can benefit from his financing offer. For local providers, it is regional funding that stands out as part of real estate financing and renovation measures. A subsidy is then added to the low-interest offer. The “green roof subsidy” for the renovation of the house roof, to name one example.

On the Internet, the special financiers for official loans are particularly attractive with particularly cheap offers. The interest rate for these financing offers and the loan conditions are tailored to public sector employees. Extremely long financing, with low rates and good interest rates, are the strengths of these offers. This is made possible by the exclusion of people outside the public service. Those who do not provide loans to risk groups have to expect fewer defaults. The savings from the minimized credit risk benefit all borrowers.

Insurance offers the official loan for teachers.

Insurance offers the official loan for teachers.

It is not just the banks that are struggling to be able to grant loans to teachers. Life insurers must invest their money safely and profitably in the interests of the insured. Your offer for home finance is therefore the official loan. In principle, it is a life insurance. The only risk in the life of a civil servant that is not insured by the employer is death. Life insurance closes this gap with its offer.

The loan for teachers through life insurance is an end-time loan. Only interest and insurance premiums are paid during the term. The actual loan is only repaid when the sum insured is distributed. The profit shares are also distributed to the insured. In particular, due to the almost endless repayment periods, the early conclusion of an official loan as a loan for teachers is an interesting building loan.