Debt Consolidation Loan

Mortgage and Refinance Solutions for Debt Consolidation

5280Lend.com works with Denver area clients to consolidate debt into a new or refinanced mortgage. Our expert team has the knowledge and experience to guide your mortgage refinance process.

As a Colorado mortgage lender, we’ll thoroughly analyze your situation to determine the best path forward to fit your financial needs. We offer personalized service for homeowners in Colorado and the Denver Metro area.

What Is A Debt Consolidation Loan?

A debt consolidation loan uses the equity in your home as collateral for increasing your mortgage amount to pay off credit cards, medical bills, second mortgages, tax debt, car loans, or any other debt obligations. Debt consolidation allows borrowers to repay multiple creditors with one new loan. We work to secure a loan with lower interest rates than the separate debt items.

Debt consolidation as part of a mortgage may also extend the repayment period and lower the monthly payment amount. Debt consolidation loans open the door to financial freedom by reducing interest expense and improving cash flow.

5280Lend.com works with homeowners to determine if refinancing with debt consolidation will provide a positive financial solution.

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How Debt Consolidation Mortgages Work

A debt consolidation loan starts by applying for a mortgage just the same as if you were buying a home. During this application phase, we will take a comprehensive look at all the financial factors that you are dealing with and help you make a determination about the best way to restructure your situation.

Debt consolidation loans are considered a cash-out refinance. The only difference is that the cash out is used to pay off the other loans/debts at closing instead of paying out cash to the borrowers.

Borrowers can pay off outstanding debts with favorable loan terms, benefiting their budget and improving monthly cash flow.

Our team can work with you to determine whether a debt consolidation loan fits your financial goals. Contact us today to schedule a consultation.

Advantages of Debt Consolidation Loans

Lower Interest Rates

The average rate on a mortgage is usually lower than many other types of debt. You can save thousands of dollars over time by consolidating outstanding debts with higher interest rates into a single loan.

Reduced Monthly Payments

Loan consolidation typically results in a lower monthly payment than the separate minimum payments on individual debts, improving monthly cash flow.

Extended Repayment Periods

Many people find that they have more flexibility to pay off their debts during a longer term. For example, a 30-year fixed-rate mortgage spreads the debt over more years, lowering the monthly payment burden.

Less Stress and Maintenance

When you combine your debt into one loan, you eliminate the need to maintain multiple accounts. You also avoid late fees and penalties associated with missed payments.

Don’t let debt rule your life. A debt consolidation loan simplifies your debt into one simple payment at more favorable terms. Find the financial freedom you dream of with help from 5280Lend.com.

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What Are the Requirements for A Debt Consolidation Loan?

Debt consolidation mortgages come in different loan types with differing requirements. Each type of mortgage has specific requirements, but generally all types will consider:

Minimum credit score.
Borrower’s income available to make the new payments.
The borrowed amount cannot exceed a defined percentage of the home’s value.
Appraisal of the financed home.
Other assets the borrower might have.

Types of Debt Consolidation

Conventional Cash-Out Refinance.
FHA Cash-Out Refinance.
VA Cash-Out Refinance.
Home Equity Loans.

We can work with you to determine the best type of refinance option to consolidate debt.

Types of Debt to Include in a Consolidated Mortgage

Second mortgages.
Student loans.
Credit card debt.
Automobile loans.
Medical bills or expenses.
Tax debts.

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Why Work with a Mortgage Bank for A Debt Consolidation Loan?

Debt consolidation loans can become complicated. You want to ensure you are receiving the best financial solution.

When you work with a mortgage bank, you connect with industry experts specializing in home lending. You can avoid the stress associated with online lenders or commercial banks.

At 5280Lend.com, we only work on home mortgages in Colorado. Our team understands the requirements and processes involved to ensure accuracy and efficiency. Plus, we only work with a set number of clients each month to give you personalized and consistent service.

Start today with a FREE mortgage assessment.