A personal loan is a good solution if you have a very good credit score. Interest rates can be in the 5% to 7% range with a term as long as 7 years.
Home Equity Loan or Home Equity Line of Credit (HELOC)
A home equity loan or home equity line of credit can be a good way to clear off old debt and spread the cost out over many years. When you have good credit and the bank looks to provide a home equity loan or HELOC, they will normally finance the property up to 80-90% of the loan to value. The loan to value is the difference between the size of the mortgage and what you will get if you sold the property. With poor or fair credit, the loan to value may drop to as low as 60 to 70% and the interest rates may be higher.
Home Equity Line Of Credit
Home Equity Loans
Cash Out Refinancing
Cash-out refinancing can offer two benefits, it can improve the terms of an existing mortgage and delivers additional funds at a lower interest rate. Homeowners who are looking for a $100,000 in additional capital may want to look at cash-out refinancing. The main purpose of cash-out refinancing is to put cash in your pocket from the equity that you've built up in your home. This capital could be used for debt consolidation and just is another way to access cash without adding a home equity loan or line of credit.
Pros and cons of Cash Out Financing
The new mortgage will offer one loan payment instead of adding the home equity loan or credit line monthly fees. Your success will depend on your current equity.
Like any mortgage, you will have legal fees, home inspections, and appraisal fees. If you review the costs from your first mortgage, expect the same charges all over again. Depending on the terms of your first mortgage, you may also be subject to prepayment penalties. Review your existing mortgage and check for early repayment fees.
Mortgage Refinancing Options
A reverse mortgage is another way to access the capital in your home or property. This product is best suited for retired people that want to start taking equity from their property.
Reverse Mortgage Options
Debt to Income Ratio
Debt to income looks at the amount you make every month and the amount you spend. They call this a debt to income ratio and we have inserted a debt to income calculator below to see if you are below 50%. Many lenders will not even look at a loan application with bad credit while others will look at your equity and maybe request a larger lien on the property. Mortgage Refinancing Mortgage refinancing is paying off your existing mortgage with a new mortgage then adding cash to the new mortgage. You can also describe this as cash-out refinancing your home. Contact a mortgage provider to discuss cash-out refinancing.
Improve Your Credit Score
Novita offers a free service to help you improve your credit score. Contact them today to get started as it will always help you to have a better credit score. Some providers are charging $99.00/month for credit repair help and Novita is offering this service at no charge through America loan Service.
America loan Service was contacted by Deandrea to help find a $100000 loan to clear off credit card debt and pay off a few smaller student loans. She wanted to get down to one payment. We had many discussions with her and wanted to share her experience with our viewers. She decided on a home equity line of credit because this was a good solution for her situation.
Deandrea made an attempt to obtain a consolidation loan for $100,000.00 last year and was not acceptedPrinciple of LoanLength of Term (Years)Interest Rate (APR)Monthly Installment PaymentLending Institution
|$98710.00||5||10.3%||$1940.74||NCNB National Bank of Florida|
|$98530.00||9||5.5%||$1064.63||Southeast Bank of Madison County, National Association|
|$98650.00||9||7.1%||$1138.29||Southeast Bank of Wildwood|
|$98590.00||7||9.5%||$1480.6||Atlantic Bank of Jacksonville|
|$98590.00||10||10.2%||$1207.21||Century National Bank of Broward|
|$98210.00||7||11.6%||$1590.66||Flagship Bank of Lake Alfred|
Deandrea has a consolidation loan of $38,000 provided by Hialeah-Miami Springs First State BankStarting Interest Rate (APR)Remaining principleLender nameLender cityLender StateLoan Obtained
|7.5% APR||$16723.28 outstanding||NCNB National Bank of Florida||Live Oak||Florida|
|5.0% APR||$30044.13 outstanding||Southeast Bank of Madison County, National Association||Madison||Florida|
|5.7% APR||$31756.0 outstanding||Southeast Bank of Wildwood||Wildwood||Florida|
|8.0% APR||$33261.76 outstanding||Atlantic Bank of Jacksonville||Jacksonville||Florida|
|6.8% APR||$36290.57 outstanding||Century National Bank of Broward||Fort Lauderdale||Florida|
|9.8% APR||$29358.83 outstanding||Flagship Bank of Lake Alfred||Lake Alfred||Florida|
Deandrea applied at several lending institutions but was always turned down. Finally, Deandrea contacted America Loan Service and we were able to explain why she was turned down. Regardless of the circumstances that caused our score to be below 620, every lender looks very closely at the entire report. How many late payments were there on his/her credit report and/ or loan payments. Are there collections or a bankruptcy reported. How long have they had their existing credit cards and / or loans? What are their work history and annual income? Are they able to support the repayment of the loan they are applying for. How big of a risk is this applicant should we approve the loan. It is hard to accept when a person's score is below what banks consider 'safe' to approve a loan. What other steps can a person take to improve their score.
Consolidation loan for $100000 in Florida near 33401
Credit Bureaus consider multiple hard pulls by lending institutions as one pull as long as they are all within 14 days for a mortgage and/or loan. If a person is applying for a credit card at multiple places, each inquiry by the credit card companies is considered a unique pull and can lower your overall credit score anywhere from 3 - 5 points.
- When it comes to Equifax, Deandrea had an initial rating of 567, thus Deandrea has a poor credit rating
- When it comes to Transunion, Deandrea had an initial rating of 603, thus Deandrea has a fair credit score
- On the Experian system, Deandrea had a 612 credit rating, a bad credit rating
Information on the lending institution called Southcoast Bank Corp. from West Palm Beach, Florida which provided the $100000 consolidation loan
- Southcoast Bank Corp.
- Street Address: 515 North Flagler Drive
- Branch city: West Palm Beach
- Branch state: Florida
- Branch zip code: 33401
- Branch County: Palm Beach
- Our records indicate that this lender is currently inactive
- Total assets: $26,094,000
- Lender's deposits: $26,674,000
- Total number of offices: 2
Deandrea has an Equifax score of 567. This is a poor credit score
Deandrea had a Transunion score of 603, viewed to be fair credit
Deandrea has an Experian score of 612. This is a fair credit score. If your credit rating is fair like Deandrea, it will impact your chances of obtaining a loan
Generated lender information for Southcoast Bank Corp. - 33401
Southcoast Bank Corp. is a loan provider located in West Palm Beach, Florida. South Coast Bank and Trust's number one mission is to exceed client expectations. South Coast offers full-service banking for personal, business and investments
Comment from Deandrea after visiting Southcoast Bank Corp. at 515 North Flagler Drive:
Deandrea was able to get the $100,000 loan using the equity in their home. They decided on a home equity line of credit to keep the payments lower right now. They are expecting an inheritance in about 3 to 5 years that will pay this debt off 100%. We recommended that Deandrea contact Novita to get help from a credit repair company as several items reported on her report were incorrect. Once she has these items removed from her report, her credit score will improve.
The original request for a consolidation loan from Deandrea
Hello, my name is Deandrea. I write to you from West Palm Beach, Florida and am seeking a consolidation loan for at least $100000. I own my home and have over $250,000.00 in equity that I can use as security. I will use this equity to secure a debt consolidation loan. I know my credit score is poor and I am doing everything I can to repair it. My nearest bank is Southcoast Bank Corp. at 515 North Flagler Drive, and I am located nearby. Can you offer any suggestions online that we could try?
- County: Palm Beach
- Home State: Florida
- Current zip code: 33406
- Current income: undisclosed
- Profession: customs inspector
- Credit Card Debt: $3000 on their Vision Premier Visa Prepaid Card
While the situations described are real, the names and some locations have been changed for privacy. America Loan Service would value your input on our work. Please do not give us your last name and try to keep the information in your private information quite general. It is the overall subject that everyone relates with and we appreciate your comments. When you send your comments, they will be reviewed within 24 hours and you will be notified if they are used.