Debt Consolidation and Your Mortgage
As the cost of living continues to rise many people are finding themselves almost drowning in a sea of debt. In order to avoid paying high credit card interest rates, one option is to consolidate your debt a home mortgage loan. A debt consolidation home loan allows homeowners to roll higher interest rate debts into one payment. Interest rates as well as the amount of monthly payments can then be reduced.
How Much Can I Borrow?
While debt consolidation mortgage loans vary from one lender to the next, many programs will allow homeowners to borrow up to 125% of the value of their home. Under such a typical debt consolidation loan, with a home valued at $100,000 you could essentially borrow up to $125,000. Depending on the amount of the debts you wish to consolidate you could save several hundred dollars per month.
Low Credit Scores Okay
People with low credit scores can qualify for debt consolidations loans. This is a welcome relief to many homeowners who have spotty credit records due to their debt problems.
There are numerous advantages to a debt consolidation loan; however, there are also some important drawbacks which you should consider carefully. In some states there is the possibility you could lose your home in the event you default on your loan. So, be sure you understand the laws regarding this matter in your state. In addition, if you place balances from charge cards on your debt consolidation loan you may not be able to continue using the cards.
With the ability to lower monthly debt payments, a debt consolidation loan could be the solution you've been looking for. If you believe it is the right solution for your debt related problems, MortgageLenders.org is ready and willing to help you find the information you need to get started with a debt consolidation loan today.
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