Mortgage Coach has added debt consolidation strategies in the Total Cost Analysis (TCA) presentation, allowing loan originators to educate consumers on lower interest debt repayment options as peaking home equity values offer household cashflow relief.
According to first quarter data from the Federal Reserve, there is $21 trillion in U.S. home equity and about $4.6 trillion in non-mortgage consumer debt such as credit cards, auto loans and college loans, with revolving and student debt having risen during the period of pandemic job loss. At the same time, mortgage rates remain at historic lows.
Mortgage lenders use the Mortgage Coach platform nationwide to create millions of multi-option loan comparisons annually. Each personalized TCA presentation is delivered to the borrower via digital link by way of email or text, offering the borrower a custom digital experience and an opportunity to make a thoroughly informed decision on their home loan.
The added Mortgage Coach debt consolidation illustrations enable loan originators to easily review detailed consolidation scenarios within a borrower’s Total Cost Analysis presentation, including comparisons between a mortgage without debt consolidation, a mortgage consolidating all consumer liabilities, and a mortgage with partial debt consolidation, offering both short- and long-term views of interest savings and cashflow impact.
“One of the more powerful items in a Mortgage Coach debt consolidation strategy is showing the borrower alternatives for how to apply funds they’d otherwise be spending on debts,” says Bill Dallas, president of Finance of America Mortgage, in a release. “Using Mortgage Coach to present a debt consolidation strategy supports our commitment to helping people make informed decisions about borrowing and their most important life purchases.”