A mortgage debt consolidation loan may be a solution to your high interest debts. Credit Card debt is most likely what borrowers will choose to consolidate first since interest rates and monthly payments are so high. By performing a cash-out refinance of a first or second mortgage you can consolidate your non-mortgage debt, mortgage debt, or both. Mortgage debt includes first mortgages and second mortgages such as a home equity line of credit or home equity loans. Non-mortgage debt would be credit cards, medical bills, student loans, auto loans, other consolidation loans, and personal loans. A cash-out refinance is a typical mortgage refinance method that can reduce your monthly payments, change your rate from variable to fixed, or change the term of your loan.
You have at least four popular techniques to consider when creating a mortgage debt consolidation loan. You can consolidate non-mortgage debt in a first mortgage. You may consolidate a second mortgage into a first. Another option is to consolidate non-mortgage debt and a second mortgage into your first. And finally you may wish to consolidate non-mortgage debt in a second mortgage.
Defaulting on your mortgages can lead to foreclosure and losing your home. A mortgage debt consolidation loan is not without its pitfalls. A borrower needs to be aware of all of their options when dealing with debt.
Consolidate Your Credit Card Debt
One popular debt to consolidate with a mortgage debt consolidation loan are credit cards. Over the past few years many people took advantage of easy access to credit cards with low introductory APRs or no interest balance transfers. After the introductory period the interest rates often jump into double digits. After running up a high outstanding balance the higher interest rates make credit card debt hard to carry.
Important Terminology
A cash-out refinance can reduce your monthly payments, change your rate from variable to fixed, or change the term of your loan. Typically with a cash-out refinance mortgage debt consolidation loan you refinance your existing mortgage with a larger loan using the equity in your home and keep the cash difference. This cash can then be used to payoff non mortgage debt such as credit cards, medical bills, student loans, auto loans, other consolidation loans, and personal loans. Now you will only need to repay one loan and to a single lender.
A second mortgage is a loan taken after your first mortgage. Types of second mortgages include a Home Equity Line of Credit (HELOC) and a home equity loan. A HELOC is attractive because it is a line of credit that you can tap into repeatedly. For some a home equity loan is a better choice because it usually offers a fixed interest rate.
Four Types of Loans
The simplest way for a homeowner to consolidate their debts is to consolidate all non-mortgage debt in a first mortgage. You perform a cash-out refinance and consolidate all of your non-mortgage debt. You leave your second mortgage as is if you have one or better yet you won't need to take one out.
If you have an existing second mortgage you can consolidate it into your first. In this case you do a cash-out refinance on your first mortgage to consolidate your second. This is not desirable if you want to consolidate a substantial amount of non-mortgage debt. It is worth mentioning to show you a more complete picture of your options.
A great way to go is to consolidate non-mortgage debt and second mortgage in your first. This way you can consolidate both your second mortgage and all of your existing non-mortgage debt through a cash-out refinancing of your first. This is most desirable because you can have a single payment and a single lender for all of your debt.
One additional method is to consolidate all of your non-mortgage debt with a second mortgage. A second mortgage is a loan taken after your first mortgage. Types of second mortgages include a Home Equity Line of Credit (HELOC) or a home equity loan with a fixed interest rate. This allows you to consolidate your existing non-mortgage debt by doing a cash-out refinance of your second mortgage only, leaving your first mortgage alone.
Loan Considerations
Typically credit card debt, student loans, medical bills, and others are considered unsecured debt. First and second mortgages are secured debt. Secured debt often grants a creditor rights to specified property. Unsecured debt is the opposite of secured debt and is is not connected to any specific piece of property. It is very tempting to consolidate unsecured debt such as credit cards using a mortgage debt consolidation loan, but the result is that the debt is now secured against your home. Your monthly payments may be lower, but the due to the longer term of the loan the total amount paid could be significantly higher.
For some people debt settlements or even debt counseling is a better solution to their debt problems. A mortgage debt consolidation loan may only treat the symptoms and not ever cure the disease of financial problems. Rather than convert your unsecured debt to secured it might be better to work out a settlement or a payment plan with your creditors. Often a debt counselor or advisor who is an expert in what your options are can be your best solution.
Just One Option
You have many options for a mortgage debt consolidation loan. Educating yourself is well worth it when considering your next steps. Review the four techniques mentioned above and decide if any are best for you. Also consider contacting your non-mortgage debt creditors directly to work out a payment plan or a debt settlement if necessary. Sometimes before committing to any action you should meet with a debt advisor to learn more about credit counseling.
For more articles on Mortgage Debt Consolidation Loans [http://consolidationdebtnews.info/refinance-mortgage/refinance-mortgage-debt-consolidation.htm] go to: Debt Consolidation blog [http://consolidationdebtnews.info/refinance-mortgage/refinance-mortgage-debt-consolidation.htm]
Will Davis writes for Consolidation Debt News [http://consolidationdebtnews.info/refinance-mortgage/refinance-mortgage-debt-consolidation.htm] a blog that provides debt consolidation solutions such as Mortgage Debt Consolidation Loans and other mortgage refinancing methods to take charge of your debt.
By Will Davis
Wednesday, August 15, 2018
Monday, August 6, 2018
Free Debt Consolidation Advice - Debt Help For You
Getting free debt consolidation advice can save you from falling into bankruptcy. Not only that, free debt consolidation advice can also enable you to work toward making your credit rating healthy again. If you are a debtor, you might need some sort of expertise to negotiate with your creditors. Debt consolidation help includes negotiation on your behalf as well as effective financial planning.
Searching For Debt Consolidation
Get free debt consolidation advice to tide over your debt crisis. There are many options for you if you are looking for free debt consolidation advice. But if you need help other than advice, you may need to pay some fee. However, there are many organizations that also offer debtors free debt consolidation advice.
Start by asking around at your church, local youth and voluntary organizations. Many of these institutions have special cells that offer free debt consolidation advice. These cells will help you locate the best free debt consolidation service.
Another option is looking online for free debt consolidation advice. The Internet has a lot of information about debt consolidation services. You need to simply log in and search for companies offering free debt consolidation advice in your area. A lot of advice may be free, and if you need services you have to pay for, you can look for a free non-profit debt consolidation quote.
If you have taken loan from a lending agency, or are reeling under the burden of credit card debts, chances are you can get free debt consolidation advice from these companies themselves. Your creditors are also eager to help you repay your debts to them, so you can look for loan consolidation help from designated departments.
Government organizations also run cells that offer free debt consolidation advice. Look up information at finance and business departments to find out more about places to find free debt consolidation advice.
How Advice Can Help You
If you are looking for free debt consolidation advice, chances are you may not be able to find someone to negotiate with the creditors for you. However, don't let that deter you. With the expert advice provided by these organizations, you will find the confidence to negotiate with your debtors on your own.
Apart from sorting out your immediate problem, free debt consolidation advice will also help you plan your lifestyle and expenditure in a way that you can avoid future debt problems. But remember, you may need to cut unnecessary expenditure along with all this.
You will also be taught how to repay your consolidate loan as early as possible so that your credit record is not damaged further. After a few months, you can start taking small steps towards repairing your credit.
Free debt consolidation advice can help you overcome debt; get your life back on track and repair poor credit.
For people looking for free debt consolidation advice [http://www.free-debt-consolidation-help.com/free_debt_consolidation_advice.html], there are options aplenty including government organizations, non-profit debt help groups and special cells set up by lenders. You can get free nonprofit debt consolidation quote [http://www.best-debt-consolidation-program.com/debt_consolidation_quotes.html] online from different non-profit debt consolidation companies and compare different quotes to select the best debt consolidation offer. Visit Free Debt Consolidation Help [http://www.free-debt-consolidation-help.com] for more details regarding free debt help options including free debt consolidation counseling and bad credit debt consolidation.
By Apurva Shree
Searching For Debt Consolidation
Get free debt consolidation advice to tide over your debt crisis. There are many options for you if you are looking for free debt consolidation advice. But if you need help other than advice, you may need to pay some fee. However, there are many organizations that also offer debtors free debt consolidation advice.
Start by asking around at your church, local youth and voluntary organizations. Many of these institutions have special cells that offer free debt consolidation advice. These cells will help you locate the best free debt consolidation service.
Another option is looking online for free debt consolidation advice. The Internet has a lot of information about debt consolidation services. You need to simply log in and search for companies offering free debt consolidation advice in your area. A lot of advice may be free, and if you need services you have to pay for, you can look for a free non-profit debt consolidation quote.
If you have taken loan from a lending agency, or are reeling under the burden of credit card debts, chances are you can get free debt consolidation advice from these companies themselves. Your creditors are also eager to help you repay your debts to them, so you can look for loan consolidation help from designated departments.
Government organizations also run cells that offer free debt consolidation advice. Look up information at finance and business departments to find out more about places to find free debt consolidation advice.
How Advice Can Help You
If you are looking for free debt consolidation advice, chances are you may not be able to find someone to negotiate with the creditors for you. However, don't let that deter you. With the expert advice provided by these organizations, you will find the confidence to negotiate with your debtors on your own.
Apart from sorting out your immediate problem, free debt consolidation advice will also help you plan your lifestyle and expenditure in a way that you can avoid future debt problems. But remember, you may need to cut unnecessary expenditure along with all this.
You will also be taught how to repay your consolidate loan as early as possible so that your credit record is not damaged further. After a few months, you can start taking small steps towards repairing your credit.
Free debt consolidation advice can help you overcome debt; get your life back on track and repair poor credit.
For people looking for free debt consolidation advice [http://www.free-debt-consolidation-help.com/free_debt_consolidation_advice.html], there are options aplenty including government organizations, non-profit debt help groups and special cells set up by lenders. You can get free nonprofit debt consolidation quote [http://www.best-debt-consolidation-program.com/debt_consolidation_quotes.html] online from different non-profit debt consolidation companies and compare different quotes to select the best debt consolidation offer. Visit Free Debt Consolidation Help [http://www.free-debt-consolidation-help.com] for more details regarding free debt help options including free debt consolidation counseling and bad credit debt consolidation.
By Apurva Shree
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