Debt Consolidation Loans

• Lower interest rates than on current liabilities generally
• Lower payments than on current liabilities
• Make 1 payment each month for all obligations
• Increase credit score with lower balances

Debt consolidation loans can be very beneficial for a homeowner that has accrued a large amount of debt or for a homeowner that has high interest debt. Debt consolidation loans will allow you to transfer all of you debt into your mortgage payment which will often reduce the interest rate on your debt and will also spread your payments over the term of the mortgage. A homeowner's monthly cash flow can be greatly increased by utilizing a debt consolidation loan. Ask your lender to go over a debt consolidation worksheet with you so that you understand the benefits and disadvantages of consolidating your debt into your mortgage.

A credit card debt consolidation loan is one of the most common ways to eliminate credit card debt. You simply increase the amount of your mortgage loan enough to pay off all of your credit card debt. This can dramatically increase monthly cash flow and eliminate sending in different payments to all of your credit cards each month. Credit card interest rates can be very high. Many times they are over 20%. With interest rates on mortgages being much lower this allows a home owner to reduce their interest rate exposure.

Unsecured debt consolidation loans will help home owners in the same way. It can be a great way to reduce interest rate exposure and consolidate the monthly payments that have to be sent out. All types of debt can be paid off with debt consolidation loans and because mortgage terms are generally paid off over a long period of time it is a great way to increase monthly cash flow.

The lenders that we work with can put together a worksheet that will help you understand exactly how you may benefit and what debts you can pay off. Often times debts need to be paid off when refinancing for qualifying purposes. Lenders will always let you know if there is a need to pay off any of your debts early in the refinancing process.