Consolidating debt mortgage refinance
Consolidating the two into a new, 30-year mortgage at 4.5 percent saves about ,642 in interest.
Consolidating the two into a 15-year mortgage at 4.5 percent saves almost 0,000 more.
If you owe 0,000 on a 0,000 home and take out ,000 to pay off credit cards, you now owe 5,000 on your home.
There may be other wrinkles involved - for example, some of your creditors may be willing to write off part of your debt in return for an immediate payoff - but the key thing is that you're simplifying your finances by exchanging many smaller debt obligations for a single bill to be paid every month.
What types of debts can be covered by a debt consolidation?
Your monthly payments on that loan will increase and you could lose your home if you default.
You also are trading a debt which can be paid off at any time with one that carries interest for the life of the mortgage.