Tips On Using a Mortgage to Consolidate Your Debt
Many homeowners consider the possibility of using a mortgage to consolidate existing debt. If you have already repaid your mortgage, you can take out another primary mortgage. Taking out a second mortgage is an additional option to consolidate debts for those homeowners who still have a primary mortgage. How sound of an idea is it to use a mortgage to consolidate your debts?
You should never use a mortgage to consolidate your debts if the interest rate for your debt is lower than the interest rate you would have on a mortgage. This would mean that you are paying a higher cost for the mortgage than you were paying on your debts. This is not a sound financial decision. There is a slight exception to this rule. If you your current debt has some kind of introductory rate that will expire and leave you with an interest rate that will be higher than that of the mortgage, then a mortgage to consolidate debt is worth considering.
There are other factors, in addition to interest rate, that you should take into account when you consider using a mortgage to consolidate your debt. When you have less than 20% equity in your home, you are required to pay private mortgage insurance. If these premiums plus the amount of your mortgage without consolidating your debts is the same as or less than the amount of your mortgage with consolidating your debt, then you do not incur extra costs by consolidating. However, if the private mortgage insurance causes your monthly payment to increase, then consolidation is costing you.
A lot of homeowners make the mistake of thinking only about the monthly payment of their mortgage in addition to what they are paying on their debts without consolidating in comparison to the mortgage with debt consolidating. Take into account that when you consolidate debt with a mortgage, you are paying it over a longer period of time, which accounts for the lower monthly payment.
Before you apply for a mortgage, you should find out your credit score. Chances are if you are having trouble with credit, then you have a less than perfect credit score. Remember that your credit score will affect the interest rate and terms you receive on a mortgage. If your credit score is below 600, the likelihood of you receiving favorable loan terms is low; not impossible, just low.
Keep in mind that when you use a mortgage to consolidate your debt, that the debt is not eliminated. Instead, you are transferring your debt from one form to another.
The best way to determine what it will cost you to consolidate your debts using a mortgage or pay them straight out is to use a mortgage calculator as well as a debt repayment calculator. Logic can be flawed, but numbers never lie. There are calculators available that will assist you in both of these calculations. Use the calculator to test out different loan amounts and mortgage rates to get a good picture of how much consolidating will cost you.
Subscribe to:
Post Comments (Atom)
27 comments:
Its like you read my mind! You seem to know a lot about this,
like you wrote the book in it or something. I think that you could do with some pics to drive the message home a bit,
but other than that, this is excellent blog. A fantastic read.
I'll definitely be back.
My web site - Car insurance calculators
I've learn some excellent stuff here. Definitely worth bookmarking for revisiting. I wonder how so much effort you put to make such a magnificent informative site.
Feel free to visit my web site: certified management Accountant salary
Hi there! This article could not be written much better!
Going through this article reminds me of my previous roommate!
He always kept talking about this. I'll send this post to him. Fairly certain he will have a very good read. I appreciate you for sharing!
Feel free to surf to my page :: free stuff for children
Wow, this post is nice, my sister is analyzing such things, so
I am going to inform her.
My weblog ... Quirky Jewellery
It's remarkable for me to have a web site, which is beneficial designed for my know-how. thanks admin
Also visit my homepage; http://Www.scamchecker.com/blog/groups/learn-all-about-The-world-of-Couponing
Excellent post. I was checking constantly this blog and I am impressed!
Extremely helpful info specially the last part :) I care for such information a lot.
I was looking for this certain info for a very long
time. Thank you and best of luck.
Feel free to surf to my web blog; best android tablet on The Market
Good post. I learn something new and challenging on sites I stumbleupon everyday.
It's always exciting to read content from other authors and use a little something from their websites.
Visit my web page ... Dominos uk Vouchers
Sweet blog! I found it while surfing around on Yahoo News.
Do you have any suggestions on how to get listed
in Yahoo News? I've been trying for a while but I never seem to get there! Many thanks
Have a look at my webpage: cheap fashion jewellery
Hello! This is my first visit to your blog! We are a collection of volunteers and starting a new initiative in a community
in the same niche. Your blog provided us valuable information to work on.
You have done a wonderful job!
Have a look at my web page :: https://Www.Noridianmedicare.com/
Right here is the perfect website for everyone who wishes
to find out about this topic. You realize a whole lot its almost hard
to argue with you (not that I actually would want to…HaHa).
You definitely put a fresh spin on a subject that's been written about for years. Great stuff, just great!
Also visit my web site - priory.mrooms.net
Fantastic beat ! I would like to apprentice while you amend your website,
how can i subscribe for a blog web site? The account aided me a acceptable
deal. I had been a little bit acquainted of this your broadcast provided bright clear idea
My homepage - free wedding stuff Uk
I blog often and I really appreciate your information.
The article has truly peaked my interest. I am going to bookmark
your website and keep checking for new information about once per week.
I opted in for your RSS feed as well.
Feel free to surf to my blog post ... best android tablet Under 100
If some one wants to be updated with most recent technologies then he must be pay a quick visit this website
and be up to date every day.
Here is my web blog: dominos voucher Code 50 off
Please let me know if you're looking for a article writer for your blog. You have some really great articles and I believe I would be a good asset. If you ever want to take some of the load off, I'd love to write some
content for your blog in exchange for a link back to mine. Please blast me an e-mail if interested.
Cheers!
Feel free to surf to my web-site; Dominos Voucher 10 Off 25
I believe this is among the so much vital information for me.
And i am glad reading your article. But wanna commentary on few general issues,
The site taste is great, the articles is in point of
fact great : D. Excellent activity, cheers
Check out my webpage: vimhost.Com
I always emailed this blog post page to all my contacts,
because if like to read it afterward my links will too.
Also visit my page; Kitsch jewellery Uk
Hello! I realize this is kind of off-topic but I needed to
ask. Does operating a well-established blog such as yours require a
lot of work? I am brand new to running a blog
however I do write in my diary on a daily basis. I'd like to start a blog so I will be able to share my experience and thoughts online. Please let me know if you have any kind of recommendations or tips for new aspiring bloggers. Thankyou!
Feel free to visit my blog :: Bestventureinc.com
Hi there, just became aware of your blog through Google, and found that it is really informative.
I'm going to watch out for brussels. I will appreciate if you continue this in future. Numerous people will be benefited from your writing. Cheers!
my webpage: dominoes vouchers codes
Thanks a lot for sharing this with all of us you really recognize what you're talking approximately! Bookmarked. Kindly also seek advice from my site =). We can have a hyperlink alternate contract among us
Also visit my homepage ... Cars insurance calculators
This is very interesting, You're an excessively skilled blogger. I have joined your rss feed and stay up for looking for more of your wonderful post. Also, I've shared your site in my social
networks
Also visit my website - Ozhealthnews.awardspace.com
If you wish for to take a great deal from this piece of writing then you have to
apply these techniques to your won webpage.
Look into my blog: Care home improvement
Greetings from California! I'm bored to tears at work so I decided to browse your site on my iphone during lunch break. I love the info you present here and can't wait to take a look when I get home.
I'm amazed at how quick your blog loaded on my phone .. I'm not even using WIFI, just 3G .
. Anyhow, fantastic site!
Here is my homepage ... qualitative Research
Great post. I was checking continuously this blog and I'm impressed! Extremely helpful information specially the last part :) I care for such information a lot. I was looking for this certain info for a very long time. Thank you and best of luck.
My homepage: Domino S Voucher Code
Hurrah, that's what I was seeking for, what a information! existing here at this webpage, thanks admin of this website.
my blog post; http://Www.Webbypages.co/
My family members all the time say that I am wasting my time here at net,
however I know I am getting know-how every day by reading thes good
articles.
Here is my web-site - sportventure.Awardspace.com
What's up friends, its impressive article on the topic of educationand entirely explained, keep it up all the time.
Check out my blog - Shopping Vouchers
I'm not sure where you are getting your info, but good topic. I needs to spend some time learning more or understanding more. Thanks for fantastic information I was looking for this info for my mission.
my web blog; dominos vouchers £25
Post a Comment