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Debt Consolidation Mortgage

Consolidate and pay off your debts by refinancing. It is  a type of cash-out refinance where you access equity in your home and use it to payoff existing debt.  If there is currently an existing mortgage on the property, this loan is paid off & the new loan amount is calculated.

Debt Consolidation refinances can have a dramatic impact in reducing your global debt payments as the interest rate on the new mortgage is in most cases substantially less than the interest rate in the debt being paid off and the term of the mortgage is often longer than that of the debt being paid off.

Pay Off Any Kind of Debt

Any debt can be paid off with a Debt Consolidation Refinance.  But below is a list of some common examples:

  • Paying off high interest credit card debt is probably the most common form of a debt-consolidation refinance.
  • Paying off credit card debt also has the added benefit of usually increasing your credit score.
  • Car Loans
  • Federal Taxes
  • Student Loans
  • Unsecured or Private loans
  • Mortgages on other real estate owned (this is common when the other property carries a high interest rate).

Benefits of Debt Consolidation Mortgages

  • Interest rates on mortgages and home equity loans or lines of credit are often much lower than those on credit cards and consumer loans
  • Making a single payment to your debt consolidation mortgage or home equity loan or line of credit is much easier than making multiple payments to credit cards and other lenders

Refinance with a Debt Consolidation Mortgage

As a homeowner, one way to start managing some of your higher-interest debt is to refinance your existing mortgage with a debt consolidation mortgage. The home equity built over years allow you to borrow additional money on your mortgage so you can consolidate your debts into one simple payment. That way you can easily budget with a structured payment plan and an assured pay-off date.

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