Consolidating debt into mortgage ten commandments of dating by young and adams
You get the convenience of rolling all your debts into a single monthly payment, which is often lower than what you were paying before, due to a lower interest rate, a longer repayment period or a combination of both.
A mortgage-based debt consolidation loan can be a good option for a number a reasons.
Debt consolidation allows people who are struggling with their finances to group their obligations into a single payment.
By consolidating your many obligations into a single one, you can often lower your interest rate and end up with a lower monthly payment.
So keep that in mind before boosting your mortgage debt.
As noted above, you can use the calculator to look at either rolling all your debts through a cash-out refinance, or to use a home equity loan/line of credit to pay off your debts and keep them separate from your primary mortgage used to pay for your home.
To do the latter, simply enter zeros for "Real Estate Loan" under other loans and installment debt and enter the information for your other debts in the places indicated.
It can also calculate how much faster you'd pay off your debts by boosting your monthly payments and how much that would save you over the long run.
Consolidation loans are a popular way to get a handle on debt.