Consolidate Debt into a Mortgage
If you are one of the few homeowners, then you should consider yourself fortunate because you can be able to consolidate debt that’s charged at high interest rates into a mortgage. This means that you can now be able to pay lower interest rates compared to what you were paying before. This is made possible because the consolidation moves your initial loan from a high interest rate paying loan to a mortgage which is a low interest paying loan. A very good example is with the credit cards in which you may be paying at least 15% and above. These rates are generally high and can be very hectic to pay them. On the other hand when dealing with mortgage payments you might be paying a maximum of 6% which is manageable.
You will need to remortgage if you want to consolidate debt into a mortgage. This means that you will now be able to get a much higher value for your standard mortgage. The balance between the higher value for your remortgage and the lower value for your initial mortgage may be used to pay off other loans. You will however need to satisfy the required income criteria and have sufficient equity in your home in order to remortgage. The whole process of consolidation and remortgaging is a very complicated process. Consolidate debt is therefore wise to seek professional help before making the final decision in order to avoid any unnecessary loses. This is because of the drawbacks that might be associated with remortgaging like the falling house prices which has made the whole idea of remortgaging unattractive to many people.
At the end of the day, consolidating debt into a mortgage may help you but you need to deal with the core problem that is the reason why you are in debt in the first place.
You will need to remortgage if you want to consolidate debt into a mortgage. This means that you will now be able to get a much higher value for your standard mortgage. The balance between the higher value for your remortgage and the lower value for your initial mortgage may be used to pay off other loans. You will however need to satisfy the required income criteria and have sufficient equity in your home in order to remortgage. The whole process of consolidation and remortgaging is a very complicated process. Consolidate debt is therefore wise to seek professional help before making the final decision in order to avoid any unnecessary loses. This is because of the drawbacks that might be associated with remortgaging like the falling house prices which has made the whole idea of remortgaging unattractive to many people.
At the end of the day, consolidating debt into a mortgage may help you but you need to deal with the core problem that is the reason why you are in debt in the first place.
