Having equity in your home is a treasured gift that many today don’t have due to the housing market. With home prices dropping, market value is down on homes all around the country, but in Utah homes are still doing well and are above the national average. This means that at this moment, there is no better time for Utah residents to use their home’s equity to consolidate debt, especially when rates are still very low. One way to maximize the opportunity before rates go up is to take out a debt consolidation loan. Utah has an advantage in that the home values are more stable than in other states, and if anyone has been on the fence about consolidating debt now is a good time to jump down.
Equity is what you build in your home as you continue to make payments to pay down your mortgage balance. So, if you paid $250,000 for your home, and you have paid your balance down to $200,000, you would have $50,000 or more of equity in your home. The reason you may have more equity in the home, is because your original loan balance may have been $250,000, but over time as you pay down your loan your home value goes up.
Homeowners work hard to buy the home, and then pay the balance down. Letting the equity work for them is smart, and still at this time provides them with a clear tax advantage. Debt doesn’t help you earn interest it charges you interest. So, wouldn’t it make sense that rolling that debt into something that can become a tax deduction would make sense? To get that tax deduction, you would need to refinance the home, roll that debt into your home so you can write off the new amount of interest in the new loan but before doing this, make sure to contact a qualified tax advisor.
Where Do I Get a Debt Consolidation Loan in Utah?
Getting a debt consolidation loan in Utah is fairly simple to accomplish. Fink & McGregor will work with borrowers to review their credit report, and help them understand where they can achieve the greatest amount of savings. Many homeowners don’t realize how much debt they are in until they stop and take an honest look at their credit report. Finances are one of the most important things that a family deals with, and can affect the ability to pay for their child’s college education, as well as save and put money aside for retirement.
A debt consolidation loan can help families save money and help them plan for the future and budget better so that they don’t have to consolidate again in the future. With rates so low today, it is amazing to see the savings that Fink & McGregor helps clients achieve when paying off high-interest credit cards.
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