Refinancing an existing home loan enables clients to find a new lender with a better interest rate, different loan terms, or to withdraw equity. As you pay off an existing mortgage, or the value of your property increases, the equity you have in your home grows. A percentage of your property’s appraised value can be borrowed in a loan, which has the option of being combined with debt consolidation.
Debt consolidation occurs when a single loan is acquired to pay off multiple liabilities and consumer debt at a lower interest rate. It allows clients to pay off unsecured debts or amounts owing on items such as vehicles, credit cards, lines of credit, and student loans. Your broker will assemble a comprehensive debt management plan that will provide some relief from interest costs.