Debt Consolidation

Are you struggling with high-interest credit card debt in Rancho Cucamonga or surrounding areas? One option to consider is refinancing your mortgage to consolidate your debt and lower your monthly payments.

How it works

By refinancing, you can take out a new mortgage at a lower interest rate and use the proceeds to pay off your debt. This can not only reduce your monthly mortgage payment, but also save you money on interest over the long-term.

There are 2 ways that we can structure the loan.

• The first way is to structure the loan to pull enough cash from your equity so that you can pay off your debt on your own. 
• The second would be to pay off your debt with the loan which would require the escrow company to send each creditor payment to pay off the balances. This method is commonly used if your debt is causing the debt-to-income (DTI) ratio to be too high. By allowing escrow to pay off the debt we would not be obligated to include those debts against your DTI; therefore, allowing you to qualify for the loan.

However, it is important to note that refinancing your mortgage can also extend the length of your loan and may require paying closing costs. This is why it is extremely important to consult with one of our professional mortgage advisors located in our Rancho Cucamonga branch to ensure you're being presented with a Total Cost Analysis (TCA). A TCA is a detailed evaluation of the costs associated with obtaining and maintaining a mortgage over a specific period of time. It is used to compare different mortgage options and to help borrowers make informed decisions about which mortgage product, strategy, or option is the best fit for their financial situation.

Is Inflation causing more debt and pressure? 

Below are the benefits of a debt-consolidation refinance:

• Get quick relief from the overwhelming stress of debt
• Save thousands of dollars in interest by eliminating high interest debt
• Simplify your finances by combining all payments into one
• Get back in control of your finances

Types of debt that can be paid with a refinance:

• Credit Card Debt
• Medical Bills
• Personal Loans
• Car Loans
• Home equity line of credit
• PACE loans (If solely paying PACE loans off, your loan will still be considered a Rate & Term Refinance)
• Student Loans

What are the Steps to refinance and consolidate debt?

Step 1: Take a little time and identify the debt that you would like to pay off and have that amount in mind. Next, check in with one of our consultants to start the conversation.  We can review your debt to determine if paying them off using your mortgage will be beneficial.

Step 2: Fill out a loan application either by phone or through our secure online portal. Upload the required documentation and our team will begin working on creating your file.

Step 3: An experienced loan officer will contact you after a thorough review of your application to go over your loan options.  This can be over the phone, in person or a virtual meeting.

Step 4:  Once you are comfortable with the loan options we'll begin the processing of your loan. If anything is needed from you, you will be contacted via the portal or personally called by one of our team members.

Step 5: After final review you'll be asked to meet with a notary to review and sign your final documents. Your loan will close soon after. 

If you are considering refinancing to consolidate debt in Rancho Cucamonga, Ontario, Fontana or any of the surrounding areas, contact our local brokerage today. A professional mortgage advisor will evaluate your financial situation and help you determine if refinancing is the right option for you.

At Nexx Mortgage, our team of experienced mortgage advisors are dedicated to helping Southern California homeowners achieve their financial goals. With a wide range of mortgage options and personalized service, we can help you find the best solution for consolidating your debt and lower your monthly payments.