|
Refinancing Your Home To Build Your Credit
Author David Schneider | May 23,2007
|
Over the last ten years Sean had made his mortgage payments on time, he had earned a significant amount of equity in his home, he had racked up a huge credit card debt and he had nearly destroyed his credit. Sean felt that he was generally a financially responsible man who had simply gotten in over his head when it came to credit card debt. To dig himself out of the bad credit zone he decided that he would try the strategy that his CPA recommended, the “refinancing your home to build your credit” strategy.
Refinancing Your Home to Build Your Credit
Credit card debt can really destroy your credit if you do not properly manage it and keep it in check. Just about everyone knows what it is like to get a credit card and promise to only use it for emergencies and then use the same card for a frivolous purchase. If you find that you have hurt your credit by over-extending your credit resources, if you have your own home and if you have equity built up in your home, then you can build your credit back up by refinancing your home.
The first step is to determine if you have enough equity in your home to cover your credit card debt. To do this you will need to add up your total outstanding unsecured debt and compare this amount against your current home equity. If you have enough equity to cover your credit card debt, then you can move on to the next step.
The second step is to find a lender to work with. Either you can query each lender individually for a mortgage quote, or you can use a mortgage quote referral service like QuoteMatch.com. It is a good idea to look at the products, terms and interest rates offered by as many lenders as possible before choosing one.
Finally, you will want to apply for a mortgage to refinance your original mortgage. You have several mortgage products that you can choose from to refinance your mortgage. You can use a home equity loan, a second mortgage or a first mortgage. Once a lender approved you for a loan and you receive your funds, you will need to pay off your credit card debt and destroy your credit cards. However, don't close your credit card accounts as this will lower your credit rating instead of helping it.
Getting Some Help
QuoteMatch.com is a mortgage quote referral service that you can use to generate many great mortgage quote leads. To use this service all you need to do is fill out and submit one easy to use mortgage quote request form. QuoteMatch.com will then match you with lenders who will help you through the process of refinancing your home to build your credit. Go to QuoteMatch.com to get your quotes now. |
|
|
Print
E-mail
Del.icio.us
Digg
