FLORIDA MORTGAGE KNOWLEDGE CENTER

Is there a debt consolidation loan for me?

Many people have heard the hype about how a debt consolidation loan can help them lower their overall monthly payments. Perhaps theyve heard from a family member or friend who lowered their monthly obligations by hundreds of dollars. You may be wondering if there is such an option available for you. Well, here is some good news: if you own a home, the answer is YES!

Debt consolidation is a type of "cash out" refinancing.

Since a mortgage loan is often amortized over a much longer period than most other types of loans, using a home loan to consolidate other debts almost always brings the debtor a lower monthly obligation. In most cases, the interest rate of a home loan is also lower than that of other types of unsecured loans.

Debt consolidation is a great way to reduce your monthly payments by combining your high interest rate balances into a single loan. Homeowners can use the equity in their home to consolidate their debt which provides a great tax benefit as well.

When considering lower payment, monthly, bills etc, your mortgage broker may be able to help you save thousands of dollars in interest payments and help position you for a better financial future.

Many times it is even possible to reduce your monthly payments by consolidating and walk away with some cash in your pocket as well. Ask your mortgage professional how you can qualify.

One common method of debt consolidation is to use the equity in your home to pay off other high interest rate debt through refinancing your mortgage. By refinancing your home you can roll all or most of your current debt into one more affordable monthly payment, lower your monthly expenses, receive added tax benefits by being able to write off mortgage interest, and just simply make life much easier on yourself and/or your family by bettering your current financial situation.

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