Capital Direct

 Capital Direct offers various mortgage and home equity loan options with interest rates that can vary depending on the specific product, loan amount, and individual circumstances. For first mortgages, they advertise rates starting at prime, with examples of conditional approvals around 3.99%. Home equity loans, often used for debt consolidation, can have rates lower than credit card interest rates, but may result in higher overall interest paid over a longer amortization period. Second mortgage rates, often short-term, can range from 10% to 15%, with some cases as high as 25%. 

First Mortgage Rates:

• Capital Direct advertises first mortgage rates starting at prime, with examples of conditional approvals around 3.99%. 
• They also offer rate examples for different loan amounts and terms, such as a 20-year amortization with a two-year fixed rate of 6.95%. 

Home Equity Loan Rates:

• Capital Direct uses home equity loans for debt consolidation, often replacing higher-interest credit card debt. 
• The interest rates on these loans can be lower than credit card rates but may result in higher total interest paid over a longer repayment period. 
• For example, a loan for $15,000 with a 6.95% interest rate and 20-year amortization would have a monthly payment of $139. 

Second Mortgage Rates:

• Second mortgage rates can vary significantly, with some reports indicating rates between 10% and 15%, and even up to 25% in some cases. 
• A two-year term fixed at 6.95% for a second mortgage of $15,000 would have a monthly payment of $139. 

Other Factors Affecting Rates:

• Loan Amount:

  Rates can vary based on the size of the loan. 
• Term:

  Interest rates are often fixed for a specific term, such as one or two years. 
• Amortization Period:

  The length of the repayment period (e.g., 20 or 25 years) affects the monthly payment and total interest paid. 
• Individual Circumstances:

  Factors like credit score and debt-to-income ratio can also influence the interest rate offered. 

Important Considerations:

• Debt Consolidation:

  While home equity loans can simplify debt repayment, be aware that extending the repayment period can lead to higher overall interest paid.
• High-Interest Debt:

  Capital Direct can be a solution for managing high-interest debts like credit cards, but it's crucial to compare rates and terms carefully.
• Consult with a Specialist:

  Capital Direct encourages customers to consult with a mortgage specialist to determine the best solution for their individual needs.