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Using Your Mortgage as a Debt Consolidation Tool

By on May 5, 2014 in Mortgage

Are you a homeowner drowning in debt? Consolidating your debtUsing Mortgages as a Debt Consolidation Tool using your mortgage may enable your home to work for you. After all, a home is not just a place to live and raise a family; it can also be a very good source of accessible cash. Accessing the equity in your home may allow you to pay off high interest rate debt by consolidating those balances into a mortgage with a lower rate.

As with any important financial decision, you will have to research your options and their costs so you can make an informed decision. If the amount of high interest rate debt is less than the available equity in your home you might want to speak with an experienced mortgage professional who can run a cost benefit analysis to see if a debt consolidation mortgage is right for you. Using a free no obligation service, like the one we provide, can give you quick access to mortgage lenders serving your area.

Get Back on Track with a Debt Consolidation Mortgage

Carrying high interest debt such a credit card can cost you thousands in unnecessary interest payments. Take a moment to see if you are carrying over a credit card balance every month. With the interest rates on many credit cards in the low double digits, moving that debt into a mortgage could more that cut that rate in half. This would allow you to pay off your debt much faster; saving you big in the long run.

If you decide that it is time to consolidate your debt with a mortgage refinance, take a moment to review your options. While checking online for a lender is a good start you should do more. Contact your current lender or local credit union. Make sure the mortgage lender you choose not only offers a great rate but also offers the loan at a low enough cost to justify the savings. It makes no sense to refinance if the cost of the new loan is greater than the amount of savings you can receive.

About the Author

About the Author: Husband, father, tech junkie and sports enthusiast. I have owned and operated ezratequotes.com as well as a number of others sites since 2005. .

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