DECEMBER 12TH, 2018

Debt Consolidation Mortgage Loans

Debt Consolidation Mortgages are perfect for homeowners whose debt-load is hard to manage. This type of loan allows consumers to pay off consumer debt, particularly high-interest debt such as credit cards, etc. by centralizing those balances into one loan. The consolidation of one’s consumer debt into their mortgage allows consumers to enjoy the lower interest rates. In combining consumer debt payments into a single lower interest payment amount, a Debt Consolidation loan can greatly improve one’s monthly cashflow. Homeowners considering Debt Consolidation have several options such as Home Equity Loans which are a great means to consolidate one’s current payments into one lower monthly payment. The majority of consumers do prefer Home Equity Loans for Debt Consolidation. A quick method to lower one’s monthly payments & interest. The equity amount one could borrow against in their home will vary depending on lender as well as being determined by the loan one obtains. Should a consumer not be able to Refinance at a lower rate, they should think twice about paying off unsecured debt with a Home Equity Loan because if the new payments are substantially higher than the old payments and the consumer is not able to meet the new obligations, they could lose their home; 125 Mortgages; Home Equity Lines of Credit; and Refinance of their existing mortgage with cash-out. By utilizing one’s home as collateral for a Debt Consolidation loan allows one to benefit from mortgage interest rates that are significantly lower. A great benefit of these loans that are associated with one’s mortgage is the realization that one may be eligible for a tax-deduction. Interest that is paid on a Home Equity loan is typically deductible although consumers should consult with tax professionals for more accurate information.

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About Debt Consolidation Mortgage Loans

What Are a Consumer’s Options for a Debt Consolidation Loan?
Due to the main types of Debt Consolidation loans, a consumer is certain to find one to meet their needs. One could consolidate for lower payments and this type of loan provides consumers a means to stretch their debt over a longer duration, hence paying smaller monthly payments. There may be other consumers who wish to consolidate to save on interest. Finally, other consumers desire consolidation to eliminate their debt quickly. Consumers who elect the last option must be ready to pay more on their monthly payments although they will save interest in a couple of ways.

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Why Would a Consumer Want a Debt Consolidation Loan?

These loans are extremely helpful if consumers are literally juggling various consumer-debt trying to pay off the all the loans they owe on or are only making minimum payments consistently. Imagine juggling a mortgage, auto loan, credit cards, etc. and one would find themselves paying more interest than principal amounts. Utilizing a Debt Consolidation Loan would provide one the financial means to pay off all those debts.

What are the Drawbacks of Debt Consolidation Loans?

The simple fix of rolling one’s consumer debt into lower interest rate loans is fantastic IF you have established good spending habits. Should a debt consolidation loan end up allowing a consumer to spend more and chalk up additional high-interest debt, it may NOT be the smartest move for the consumer. Consumers should also check with their lender to ascertain if their home loan has a “balloon” payment which is a large sum due all at once.

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This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.