Debt Consolidation Loans

Debt Consolidation Loans

Debt Consolidation Loans

Denver / Lakewood: Debt consolidation loans in Denver can make a lot of sense for many home owners.  With home values appreciation at strong rates over the past 10 years, and Colorado mortgage rates near all-time lows, accessing your equity to pay off higher interest rate loans can make a lot of sense.

Does a debt consolidation loan make sense for me?  

If you have at least 30% equity in your home, a debt consolidation loan may make sense.  Debt consolidation loans, also called cash out refinances, are capped at 80% of your home value.  What this means is that if you have at least 30% equity, you can pull out 10% of your home’s value at a low Colorado mortgage rate and pay off higher interest debt.

This type of cash out refinance makes a lot of sense if you don’t have a short term plan to pay off your higher interest debt.  Why keep paying a higher rate of interest on credit cards, auto loans, or student loans when you can pay a much lower rate and lower your monthly payments significantly.  We have lowered some of our client’s monthly bills by $500, $700, even $1000 a month!

We can look at your specific situation and send you a no obligation analysis both short and long term to see if it makes sense for you.  Just visit our debt consolidation loan tool so we can get some basic information and we will be in touch!

But I don’t want to reset my mortgage to 30 years again!

This is a common fear so you aren’t alone.  Shorter term loans are available such as 20 years or 15 years which may be worth considering.  However, if you get a 30 year fixed debt consolidation loan, you will reset your mortgage to 30 years.  But it’s not as bad as it seems!

Consider this.  If you apply the savings you are getting on a monthly basis to your mortgage payment, paying extra principal every month, you will actually pay off your mortgage much sooner than with your current loan.  Not only that, but you will have peace of mind of not being locked into higher payments, so if you have a life event like losing your job or a medical situation, you will only be obligated to the lower mortgage payment.

Let’s take an example.  Let’s say you are 2 years into a 30 year fixed loan at an interest rate of 4.125% and a principal and interest payment of $1696 per month.  Your original balance was $350,000 and you have paid it down to $338,000.   You decide to take out a debt consolidation loan at 3.875% paying off $20,000 in debt that had $450/mo in monthly minimum payments.  Your new loan balance with closing costs will be $363,000 and the new payment is $1706 per month, virtually the same as your previous payment.  You have shaved $440/mo off your monthly expenses!

Let’s look at this situation both short and long term:

Old Loan New Loan
Balance Today $338,000 $363,000
Payment $1696 $1706
Years remaining 28 30
Extra Principal Payment (monthly) $0 $440
Balance in 2 years $324,891 $339,765
Balance in 5 years $302,725 $299,756
Balance in 10 years $259,118 $221,837
Loan Paid Off Date 1/1/2048 6/1/2040


As you can see, this powerful strategy can lead to even more equity and building more wealth over time.  And this isn’t even considering the fact that most credit card minimum payments will keep you in a debt cycle for many many years.

Let’s take a look at your situation!  Just visit our debt consolidation loan tool to get us some basic information and we will run an in-depth analysis of your situation to see if a debt consolidation loan makes sense for you. It doesn’t cost a penny to talk and we are happy to answer your questions.

You can reach us at 303-670-0137 by phone or text, or email us at

Apply now if you’re ready!


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Intercap Lending

(303) 670-0137
215 Union Blvd Suite 210
Lakewood, CO 80228

Intercap Lending Inc. NMLS# 190465
Richard Baxter NMLS #395819, CO License #100034412
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