A Debt Consolidation Mortgage
A debt consolidation mortgage is when you refinance your mortgage to
incorporate all your high-interest debts into one payment – your mortgage!
- A much lower monthly interest rate that all your debts will now fall under
- Lower monthly payments
- The comfort and convenience of making only one monthly payment.
- Improved credit score from making all your payments on time.
Here’s an example showing the effect on your monthly payments:
| Debt | Amount | Payment |
|---|---|---|
|
Mortgage |
$215,000* |
$1,355.37 |
|
Visa/MC |
$20,000 |
$600 |
|
Car Loan |
$20,440 |
$382 |
|
Dept. Store Card |
$5,000 |
$150 |
|
|
$260,440 |
$2,487.37 |
*With mortgage amortized over 20 years.
After Consolidation
| Debt | Amount | Payment |
|---|---|---|
|
Mortgage |
$265,440* |
$1,561.63 |
NOTE: Total values will depend on your lender and interest rates
The total is $1561.63 | Monthly Savings = $925.74
Now all that’s left is to figure out which solution is best for you and wipe out all those high-interest payments.