Mortgage Blog
All About Debt Consolidation
May 14, 2024 | Posted by: Sarabjit Dhuna
In the following article, we will give some tips on how to manage money better with debt consolidation. In addition, we will talk about how you save money by combining your debts into mortgage that can help you to save money.
Debt Consolidation: -
When you take all of your high interest debts and take a loan to pay out all of them at once it is called Debt Consolidation.
How Can i consolidate all of debts: -
There are few options to consolidate all of your debts with a lower interest rate. If you own a house, then you can take a mortgage loan with lower interest rate to pay out all debts. Most of the lenders can let you borrow up to 80% LTV of your home equity.
HELOC (Home Equity Lines of Credit): -
This option works just like a credit card than a loan. This is a revolving line of credit. You can get this HELOC with a lower interest rate compared to Credit card. You can read more about HELOC on our blog page.
Mortgage Refinance: -
In this option, you must break your first mortgage and then refinance mortgage with the original amount plus the amount you need to consolidate debts. You may get a better interest rate than a 2nd mortgage. However, you have to pay penalties to break 1st mortgage. You can read more about Mortgage Refinance on our blog page.
2nd Mortgage: -
In this option, you will get money against your equity. The interest rate is usually higher than 1st mortgage.
Advantages of Debt consolidation Mortgage: -
-
One of the most prominent advantages of debt consolidation Mortgages is offering lower interest rates compared to credit cards and personal loans.
-
It's difficult to manage multiple debts and payments dates so, with debt consolidation you just have to manage only 1 payment.
-
You can also increase your credit score by paying off through debt consolidation mortgages.
If you are looking for any types of mortgages or any questions regarding mortgages, then contact Sarabjit or you can visit our website Centum United Mortgage
If you are looking for pre-constructions condos and homes, then check out our latest projects on our website own ontario home.
