A debt consolidation mortgage can come in the form of a fixed-rate mortgage or an adjustable rate mortgage. The concept of a debt consolidation mortgage is to simply consolidate your monthly debts into either a new, first mortgage or a second mortgage or a home equity mortgage (HELOC). The end result you will be replacing your credit card debt and other debt that has been consolidated into one new mortgage loan, which is often at a lower interest rate and APR. Equally as important, there tax incentives with this since the interest can be tax deductible (consult your tax professional) when compared to credit card payments which generally are not tax deductible.
Since many Americans have multiple credit cards and debts, the solution is a debt consolidation mortgage loan. We can help you consolidate your debts and lower your payments by eliminating the monthly payments associated with your credit cards and debts.
Doing this will also be the first step in improving your credit scores as anytime you utilize more than fifty percent of your available credit card balances, you are creating a reduction in your scores.
If you own a home, you can get a debt consolidation home equity loan. With a debt consolidation home loan you are able to consolidate each of your high interest credit cards, as well as your consumer loans, into one inexpensive and affordable monthly payment with low interest which may have advantageous tax incentives as well.
Debt consolidation is ideal for any homeowner that has more than consumer credit account, such as credit cards, auto loans, and other revolving debt. Also, any homeowner who has higher than market interest rates on any accounts may benefit by consolidating all accounts into one loan with a lower rate than the blended rate of multiple, high interest rate accounts.
You will simply receive a new loan with new payments and an amortization schedule, while paying off the old accounts identified such as credit cards, high rate revolving accounts, auto loans, etc.
• You can save substantially by consolidating many accounts into one new mortgage with often a much lower interest rate and APR.
• You may gain tax incentives since mortgage interest is often able to be written off (consult your tax professional).
• You may be able to improve your credit score.
• You may have peace of mind with one new payment (which is often lower) rather than multiple payments on multiple accounts, cards, and so on.
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