Green mortgages are rising in popularity as more people recognize that that energy-efficient homes can save money in utility costs as well as help the planet. And mortgage lenders, who know that today’s big Fed rate cut won’t be the be and end all for the economy, want to offer incentives. And one way the “big guys” at Bank of America, JP Morgan Chase and Citigroup are doing it is by offering reduced closing fees for energy-efficient homes.

This can even work on your second mortgage. Some lenders are offering green mortgages and incentives for adding improvements that make your home more energy efficient. It’s just another creative way for mortgage lenders to try and make the whole lending thing work again.

The good news is that it could save you money as well.

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Saving Money With Green Mortgages

Why home equity loan debt consolidation seems attractive

If you have a great deal of debt, home equity loan debt consolidation seems attractive because you would never be able to get a debt consolidation loan that would pay off such a large amount unless it were secured by a large asset. Putting your home up as collateral makes it more likely you will get the loan to begin with.

Then there are other advantages. The interest rate is lower on a home equity loan debt consolidation because home mortgage rates are lower than other loan rates. Additionally, that interest rate is often tax deductible. If you are very disciplined, and you have wherewithal to stick to a debt plan, you can benefit from a home equity loan debt consolidation. But watch out for the risk.

Risk of home equity loan debt consolidation

The main risk to home equity loan debt consolidation is the fact that your home is at risk. Rather than having unsecured debt, it is now secured – by arguably your most valuable asset. If something happens and you can’t make the payments on your second mortgage, your home can be taken from you. This is quite a blow! Before you go the home equity loan debt consolidation route, make sure you carefully consider your alternatives. And if you do take that route, make sure you have a good debt plan in place for paying of the loan as quickly as possible.

Post from: EveryJoe

Home Equity Loan Debt Consolidation