Are you feeling overwhelmed managing several debt payments every month? If your home doesn’t hold much value but you’re looking for an easy way to combine your debts, a NON-QM 95% LTV debt Consolidation Refinance is what you need. This guide is here to make it simple for you to get all the details about this refinancing option—what it is, how it operates, and how you can be eligible for it in 2024. Let’s get into it!
Understanding How to Manage Debt with a NON-QM 95% LTV Debt-Consolidation Refinance
Paying a mortgage is a big deal for most because it’s usually the largest bill people have every month. These home loans have been spread out over 30 years to make your wallet easier. But there’s more than just the house. A lot of folks have other bills, too – like credit card bills, car payments, or personal loans. Put them all together, and a lot of money goes out every month.
Living from one paycheck to the next is pretty common, even for people who make good money. Trying to cover all your bills can be tough after taxes and other stuff get taken out of your pay. Paying the minimum on credit cards, which often only covers the interest, hardly lowers your Debt.
Consider car payments, which are around $400 a month for many. It’s a big chunk of money, especially when you compare it to what you owe on your house. That $400 monthly is like an extra $80,000 on your mortgage.
But there’s a solution. It’s called NON-QM 95% LTV Debt-Consolidation Refinance. This lets you refinance your house loan to cover all your debts, bundling them into one. This way, you end up with a single, lower monthly payment that can save you a ton of money. Speak With Our Loan Officer for Mortgage Loans with Bad Credit
What is NON-QM 95% LTV Debt-Consolidation Refinance?
A NON-QM 95% LTV Debt-Consolidation Refinance is a special kind of home loan for folks with limited equity in their house. If you own less than 20% of your home, this loan might help you out. Instead of needing a lot of home equity to take cash out, this loan lets you borrow up to 95% of your home’s value.
With this refinance, you can roll all your debts, like what you owe on credit cards, car loans, and personal loans, into one single loan. That means you have one mortgage payment instead of having to juggle multiple payments every month. It’s a way to simplify your life and save cash on those pesky interest rates and fees.
Cash-Out Refinance Mortgage Guidelines for 2024
When you want to take some cash out of your home’s value, how much cash you get depends on your home’s equity. Here’s a simple breakdown based on the type of loan:
- FHA Loans: With these, you can borrow up to 85% of your home’s value. This means you need to have paid off at least 15% of your home.
- Conventional Loans: You can borrow up to 80% of your home’s value, so you need to own 20% of your home.
- VA Loans: If you’re a veteran, you’re lucky because you can borrow up to 100% with no minimum equity needed.
And there’s this cool new option called the NON-QM 95% LTV Debt-Consolidation Refinance. It lets people who’ve only paid off 5% of their home consolidate their debt and lower their monthly payments.
Debt Consolidation vs. Cash-Out Refinance
Understanding the difference between bundling your debts together and taking cash out of your home’s value is key. Many lenders see combining your debts into one as a type of pulling money out of your home’s equity. When you pull cash out, you can use that money for anything—like paying off what you owe, fixing up your house, buying another property, or covering high costs like weddings or health care bills.
But this special loan called a Non-QM 95% LTV Debt-Consolidation Refinance, is about helping you clear your existing dues. This loan pays for your main mortgage and any other debts you have, such as car payments, credit card bills, and personal loans. It simplifies things by giving you just one monthly payment to manage.
NON-QM 95% LTV Debt-Consolidation Refinance | How Does it Work?
If you want a NON-QM 95% LTV Debt-Consolidation Refinance, you need good credit, but how good depends on how much of the loan versus the home value you want. Here’s a simple guide:
- If your credit score is 740, you can borrow up to 95% of the value of your home.
- A credit score of 660 lets you borrow up to 90%.
- With a 500 score, you can borrow up to 85%.
This special mortgage helps pay off your main mortgage and other debts like car or student loans, personal loans, and credit card bills.
Benefits of NON-QM 95% LTV Debt-Consolidation Refinance
If you’re thinking about a NON-QM 95% LTV Debt-Consolidation Refinance, here’s why it’s a smart move:
- Lower Monthly Payments: Combining all your debts into one loan can cut down on what you pay monthly.
- Simplified Finances: It’s much easier to handle one payment than juggling several different debts.
- Potential Savings on Interest: Usually, the interest on a mortgage is less than what you’d pay on credit cards or personal loans, meaning more money stays in your pocket over time.
- Boost Your Credit Score: Clearing out those high-interest debts can increase your credit score because you’re using less of the credit available to you.
Who Can Benefit from NON-QM 95% LTV Debt-Consolidation Refinance?
Are you a homeowner who wants to combine your high-interest debts into one easy payment? If you have at least 5% equity in your home, struggle with paying off several high-interest debts, and your credit score fits what’s needed for NON-QM loans, consider a NON-QM 95% LTV Debt-Consolidation Refinance. This refinance can help make your monthly payments more manageable. So, if keeping up with your different debt payments is getting tough, a NON-QM 95% LTV Debt-Consolidation Refinance could help you out. Click here for Non-Qm 95% Debt-Consolidation Refinance
Steps to Qualify for NON-QM 95% LTV Debt-Consolidation Refinance
If you’re thinking about getting a NON-QM 95% LTV Debt-Consolidation Refinance, here’s a simple guide:
- Check Your Credit Score: To qualify, you need a good credit score. Make sure it’s up to par.
- Know Your Home’s Value: Find your home’s current market value with an appraisal.
- Prepare Your Paperwork: Have your income and tax info and other important financial documents.
- Talk to a Mortgage Expert: Find a mortgage broker who is knowledgeable about NON-QM loans.
- Apply for the Loan: Fill out the application and give them all the necessary information.
- Seal the Deal: Once you get the green light, close the loan and enjoy lower monthly bills and one combined debt.
This way, you can easily navigate through applying for a NON-QM 95% LTV Debt-Consolidation Refinance.
Important Considerations
Thinking about going for a NON-QM 95% LTV Debt-Consolidation Refinance? Here’s what you should keep in mind:
- Closing Costs: Remember, refinancing isn’t free. You’ll need to pay for things like appraising your home, processing the loan, and other fees.
- Interest Rates: Usually, the interest on a mortgage is less than what you’d pay on credit cards. But make sure you fully understand your new loan’s terms and interest.
- Loan Terms: Consider how long you’ll repay your new mortgage. A longer loan can make your monthly bills smaller, but you might pay more interest over time.
NON-QM 95% LTV Debt-Consolidation Refinance for Primary Homes Only
It’s important to note that NON-QM 95% LTV Debt-Consolidation Refinance Loans are available only for owner-occupied primary homes. This means that second homes and investment properties do not qualify. Homeowners with higher monthly debts, such as larger car payments and significant credit card debt, can benefit the most from this refinance loan.
Using a NON-QM 95% LTV Debt-Consolidation Refinance can really help homeowners who want to make managing their money easier and lower what they pay every month. It’s a good way to get your finances under control.
FAQs: NON-QM 95% LTV Debt-Consolidation Refinance Made Easy
- 1. What is a NON-QM 95% LTV Debt-Consolidation Refinance? A NON-QM 95% LTV Debt-Consolidation Refinance is a special home loan that lets you combine multiple debts into one mortgage, even if you have little equity in your home. It allows you to refinance up to 95% of your home’s value, making it easier to manage your finances.
- 2. How does a NON-QM 95% LTV Debt-Consolidation Refinance help me? This refinancing option combines all your debts into one monthly mortgage payment. This can lower your overall payment compared to paying several high-interest debts separately. A non-QM 95% LTV Debt-Consolidation Refinance helps you save on interest and fees.
- 3. Who can qualify for a NON-QM 95% LTV Debt-Consolidation Refinance? Homeowners with at least 5% equity in their home can qualify. Your credit score also matters—740 for 95% LTV, 660 for 90% LTV, and 500 for 85% LTV.
- 4. What types of debts can I consolidate with this refinance? You can consolidate various debts, including credit cards, car loans, personal loans, and student loans. The goal is to combine these debts into one manageable mortgage payment.
- 5. Can I use a NON-QM 95% LTV Debt-Consolidation Refinance for a second home or investment property? No, this refinance is only available for primary homes where you live. Second homes and investment properties do not qualify.
- 6. How do I start the process for a NON-QM 95% LTV Debt Consolidation Refinance? First, check your credit score and determine how much your home is worth. Then, gather your financial documents and talk to a mortgage broker specializing in non-QM loans. Finally, you can submit your application and wait for approval.
- 7. What are the benefits of a NON-QM 95% LTV Debt-Consolidation Refinance? Paying off high-interest debts can help you achieve lower monthly payments, simplify your finances with just one payment, save on potential interest, and improve your credit score.
- 8. What are the costs associated with a NON-QM 95% LTV Debt-Consolidation Refinance? Be prepared for closing costs, including appraisal fees, loan origination fees, and other charges. These costs are part of the refinancing process.
- 9. Will refinancing affect my credit score? When you apply for a refinance, your credit score may drop slightly due to the credit check. However, consolidating high-interest debts and reducing overall debt can help improve your credit score.
- 10. Is a NON-QM 95% LTV debt Consolidation Refinance the right choice for me? This could be a great option if you have multiple high-interest debts and at least 5% equity in your home and want to simplify your monthly payments. Discussing your situation with a mortgage broker to determine if it fits is best.
If you have any questions about NON-QM 95% LTV Debt-Consolidation Refinance, please contact us at 800-900-8569. Text us for a faster response. Or email us at alex@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays. Speak With Our Loan Officer for Mortgage Loans
This blog about NON-QM 95% LTV Debt-Consolidation Refinance Made Easy was updated on July 25th, 2024.
