There is usually a lot to learn before you close on your home loan. A mortgage broker has a built in advantage of years of training and experience. He or she can look at your loan documents and spot troubles ahead of time. As with any type of major contract, it is much easier to spot and correct problems up front than three or four years down line.

Mortgage brokers usually have one of two types of professional arrangements: they can make money from borrowers by charging a fee for their counsel, or they can make money from mortgage lenders for bringing in new clients. Neither arrangement is free from abuse.

So ask a lot of questions up front, and ask for referrals from other home owners who have used their services in past. In addition, take time to read every document that comes your way and ask questions if you’re not sure, or if you’re feeling pressured.

To find a qualified mortgage broker, do a quick search online or ask for referrals from homeowners in your town.

The rate will be slightly higher than you would get on a first mortgage so some caution must be followed before you decide that a home equity loan is solution to your debt problems.

The interest on your home equity loan is tax deductible. This gives you an even better opportunity to get rid of your debt. Once you factor in savings from your tax deductible interest payments you will see that cumulative interest that you pay for borrowing is even less.

A home equity loan is not without risk It is often said that best way to get out of debt, is to stay out of debt. If you cannot pay off new debt that is now secured with your real property, you can lose your home. A home equity loan is a temporary proposition and must be approached in such a manner.

If you are overwhelmed and overextended, only a long term financial strategy that includes budgeting, paying off existing debts and possibly increasing your income can really lead to a debt free lifestyle.