The Facts on Debt Consolidation for a Mortgage Refinance
High consumer debt can feel like a downward spiral from which you'll never regain your footing. However, if you are a homeowner, you have some great options that can offer you a fresh start on the road to a healthier financial situation. A debt consolidation mortgage loan can help you avoid filing bankruptcy, eliminate creditor harassment, lower your debt payments up to 50%, and also provide one monthly payment.What Is a Debt Consolidation Mortgage Loan?
A debt consolidation loan allows you to take multiple loan balances (and multiple monthly payments) and consolidate the individual loans into one new consolidation loan with a single monthly payment. This allows you to trade out the multiple payments at higher interest rates with one lump sum payment at a much lower interest rate. Lenders offer consumers lower rates for debt consolidation loans due to the fact the consumer's house will serve as collateral for the loan... Debt Consolidation for Homeowners with Credit Card Debt
A debt consolidation mortgage loan is often advisable when someone is paying off credit card debt. Credit cards can carry a much larger interest rate than even an unsecured loan from a bank. Homeowners will usually get a lower rate through a secured loan using their property as collateral. Another possible advantage is that interest you pay on your debt consolidation loan may be tax deductible. Your tax consultant can advise you on the matter, Use LoanWeb's Debt Consolidation calculator to see if this option is right for you.
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