What are the expenses, fees and closing costs associated with securing a home equity debt consolidation loan?
Expenses, fees and closing costs associated with a Debt Consolidation loan can vary greatly, some are standard and some are optional. Your ability to qualify for the loan will depend on three basic factors: your debt-to-income ratio, your credit rating, and the amount of equity you have in your home.
You will need to pay for an appraisal, to determine the current value of your home.
Additional fees will be needed for Title work on the property, recording fees, and associated fees the lender will charge for Underwriting the loan and other work they provide. These fees can vary widely, so be sure to shop around.
You may choose, at your option, to pay discount points (a point is equal to 1% of the total loan amount), paying a fee to buy yourself a lower loan rate. That fee is tax deductible.
There can be other points associated with the loan charged by the lender, or your mortgage broker. If there are, find out why the lender is charging them and again comparison shop to see that you are not being overcharged - so that you get the best deal that meets your needs!
If you would like more information, please visit our mortgage resource