View the Total Cost of Borrowing Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you.
Consolidating multiple loans means you'll have a single payment each month for that combined debt but it may not reduce or pay your debt off sooner.
A home-equity loan, also known as an "equity loan," a home-equity installment loan, or a second mortgage, is a type of consumer debt.
It allows home owners to borrow against their equity in the residence.
It requires more caution and more pause on your part.
Consolidating multiple credit accounts into one new loan with a single payment may help you lower your overall monthly expenses, increase your cash flow, and eliminate the stress of multiple monthly payments.
Home-equity loans exploded in popularity after the Tax Reform Act Of 1986, as they provided a way for consumers to somewhat circumvent one of its main provisions, which eliminated deductions for the interest on most consumer purchases.He opened a Chase home equity line of credit a few years after buying his first home, which helped him use his equity to consolidate his debt and move closer to living debt-free.Now, he rolls his debts and credit card balances together into one monthly payment with a low interest rate.The loan is based on the difference between the homeowner's equity and the home's current market value.Essentially, it is a mortgage, and it also provides collateral for an asset-backed security issued by the lender and tax deductible interest payments for the borrower.