Option One Debt Consolidation Reviews: The Option One Debt Consolidation Process

April 1, 2024

Are you struggling under the burden of high-interest credit card debt and other loans? By rolling multiple debts into one new consolidated loan, you can secure a much lower interest rate and simplify your personal finances.

One of the top lenders for debt consolidation is Option One. Their cash-out mortgage refinancing loans allow borrowers to tap home equity to slash interest costs.

This post will help with the nuts and bolts of Option One debt consolidation products. You’ll find out how their loans work, see real customer reviews, and learn about the pros and cons to consider.

Debt consolidation with Option One has helped countless borrowers finally get ahead of pesky account balances. Read on to see if their mortgage refinancing loans could provide the relief you need too!

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What is Debt Consolidation and How Can It Help?

The goal of debt consolidation is to streamline multiple loan payments into one lower monthly payment. This is achieved by taking out a new consolidation loan to pay off your existing credit card, medical, and personal debts.

The major benefits of debt consolidation loans include:

Lower interest rate – Consolidation loans typically have much lower interest rates compared to high-rate credit card debt. This saves you money on interest fees.
Single payment – Instead of tracking several payment due dates, you have one monthly consolidation loan payment. Simpler to manage.
Pay off debt faster – The lower interest rate means more money goes toward paying off your principal debt balance each month.
Improve credit score – Responsibly paying off a consolidation loan can improve your credit utilization ratio and mix of credit types.

However, debt consolidation is not perfect. Closing old credit card accounts can temporarily ding your credit score. And it’s easy to rack up new debt if old spending habits are not addressed. Overall though, debt consolidation is an effective strategy for many borrowers.

Opting for Option One for Debt Consolidation

Option One offers debt consolidation loans through cash-out mortgage refinancing. This allows you to tap into your home equity to pay off high-interest debts at a lower rate.

To qualify for an Option One consolidation loan, requirements include:

At least 15-20% equity available in your home
Good credit score – 620+ but options for lower scores
Stable income and employment history

Loan amounts range from $15,000 up to $500,000 depending on your equity, income, and debts being consolidated. You can choose loan repayment terms from 10 to 30 years. Interest rates are very competitive, given Option One’s ability to offer low mortgage rates.

Option One offers specialty mortgage programs including:

Jumbo loans up to $3 million
Loans for investment properties
Programs for self-employed homebuyers

This variety helps ensure Option One can structure the right consolidation loan for your unique situation.

The Option One Debt Consolidation Process

Here is an overview of what to expect when applying for an Option One debt consolidation loan:

Application

You’ll need to complete a loan application with information on your income, assets, debts, and property value. Option One may ask for documents like pay stubs, bank statements, tax returns, and mortgage statements.

Underwriting

The Option One underwriting team will evaluate your credit, debts, employment history, home value, and equity position. This involves getting your credit report, appraising the home, and verifying application details.

Approval decision

Within 1-2 weeks, you’ll receive a loan decision from Option One. If approved, you’ll get mortgage documents listing the exact loan terms.

Final loan steps

During this closing period, complete any final tasks like a home inspection. Then sign your loan documents

Paying off debts

Option One will distribute loan funds to your creditors to pay off your consolidated debts in full.

Single monthly payment

Going forward just make one loan payment to Option One each month. Enjoy debt relief!

It’s a straightforward process that Option One’s team guides you through smoothly. Many customers appreciate their detailed communication and support when applying.

What Are People Saying in Option One Reviews?

In general, customer feedback for Option One is very positive, especially regarding their consolidation loans. Here are excerpts from a few Option One debt consolidation reviews:

“Consolidating with Option One saved me over $600 a month compared to my credit card payments. My only regret is not doing it sooner!” – Kelly S.

“Super fast process. I applied on a Thursday and had loan approval the next Monday. The funds were deposited a week later. Amazing customer service team.” – Mark T.

“I have poor credit and didn’t think I’d qualify. But Option One worked with me and I got approved at a decent rate. I’d absolutely recommend them.” – Daniel G.

“Customer service dropped the ball a few times during my application process. But overall a good loan product.” – Nancy P.

Based on surveys of Option One borrowers, they maintain an average satisfaction rating of 4.8 out of 5 stars. The company takes customer feedback seriously to continually improve their service.

Pros of Choosing Option One for Consolidation

Here are some of the key advantages of using Option One for your debt consolidation loan:

Option One offers excellent rates, given their focus on refinance mortgage lending. This saves big on interest costs.
Pick a repayment term from 10 years up to 30 years. Longer terms mean lower monthly payments.
The lump sum cash can also be used for other costs like home repairs or medical bills.
Option One assigns you a loan officer, processor, and underwriter for individual guidance.
The loan process is quicker compared to HELOC applications with banks.
Options for self-employed, low credit, jumbo loans and more.

These features make Option One a top choice for those in need of fast debt relief through consolidation.

Potential Downsides to Consider

While Option One debt consolidation earns overwhelmingly positive feedback, there are a few potential drawbacks to keep in mind:

Refinancing your mortgage will incur closing costs typically ranging from 2% to 5% of your loan amount. But for larger loans, the interest savings outweighs this.

Lower credit score – Your credit score may dip 10-30 points after consolidating. Opt to keep 1-2 old credit cards open.

If you cash-out a very large loan amount, monthly payments could increase rather than decrease.

It takes about 1-2 months from application to getting your funds. Requires paperwork and patience.

For most borrowers though, the advantages of Option One consolidation loans far outweigh these minor concerns.

Conclusion

Debt consolidation through Option One mortgage refinancing provides an excellent route for streamlining high-interest debts into one manageable payment. Customer reviews highlight the outstanding service, quick process, and savings achieved.

While it’s not perfect, and you’ll want to consider closing costs and credit impacts, overall Option One earns top marks according to most users.

If you’re feeling overwhelmed by debt payments, take the time to check current Option One debt consolidation rates and start an application. Their knowledgeable team can advise if their consolidation loan is the right fit to help you finally gain control of your finances.

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