Lower payment or lower cost?
Mike Bjork at Arbor Financial Group
Mike Bjork
Arbor Financial Group
Phone: (310) 923-1884
Email: [email protected]
NMLS# 275652
Company NMLS# 236669
Licensed in: CA, MN, AZ
Debt Consolidation Reality Check | Arbor Financial Group
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Debt-consolidation reality check
Monthly relief and lifetime cost are different numbers. This page shows both, and it shows what changes when a home secures your debt.
Read this first
Moving unsecured debt, such as cards or personal loans, into a loan secured by your home changes the consequences of nonpayment. Unsecured debt generally does not put your home directly at risk. A home-secured loan can. If payments become unsustainable, the lender can foreclose.
Enter each balance, rate, and monthly payment. Replace the examples with your own statements.
Current totals: owed, paid each month.
Lower monthly payments often mean paying for longer, which can raise total interest. Compare the monthly change and the lifetime cost before deciding. Figures are estimates, not a quote. Fees on the new loan are included in its cost.
Decide how the cards will be used. Balances that drop to zero can be run up again, and then you owe both.
Keep the old accounts only if you can manage them.
Confirm the fixed rate, term, and fees in writing before you decide.
If the payment would strain your budget, or if you cannot change the spending that created the balances, a home-secured loan may add risk without solving the problem.
· NMLS #
These are illustrations, not a quote, approval, or loan offer. Home-equity borrowing creates debt secured by your home. Failure to repay can lead to foreclosure.