1. HOW MUCH EQUITY DO YOU REALLY HAVE IN YOUR HOME?
This is a closely guarded banker’s secret. The truth is, you probably have more equity (value) in your home than you think. And different companies use different methods to determine how much you can borrow on your home. These days, there are even plans that allow “borrowing power” you have locked up in your home.
2. SECOND BONDS ARE A BAD IDEA.
Sometimes a second bond is a bad idea but sometimes it’s a good idea — it just depends on your particular circumstances. Your financial advisor or mortgage broker’s job is to determine THE best way for you to use your home’s value as the “crowbar” to pry open the financial prison doors and get you to the best possible financial place you can be.
3. REFINANCING IS TOO EXPENSIVE.
Refinancing usually has some costs but is NEVER “expensive” when it saves you money. When refinancing slashes your interest rate and/or pays off other high-interest bills and/or lowers your total monthly bills, it is NOT “expensive”.
4. CREDIT PROBLEMS STAND IN MY WAY.
Many people think that a bad credit record stays on their records for seven years. While that is technically true, there are good loan programs where only your most recent 12 months of credit behavior is considered. There are good plans even for people with past or even recent bankruptcies. The debt would have to be paid and you have to be rehabilitated for at least a year.
Also, if you are a self-employed homeowner, you can obtain a home mortgage refinancing plan that is in your best interest, which will save you money, regardless of past or present credit problems. Of course, if you have good credit, so much the better. But you do not need to be trapped because of credit problems either.
For more information on debt consolidation, bonds and other related articles go to www.globalproperty.co.za