In fact, you will go back into debt if you are in the habit of using credit cards to get by.
Second – know what your amortization schedule looks like.
The absolute best way to consolidate debts into a mortgage is to use the shortest mortgage term possible.
By eliminating credit card payments or auto loan payments, the shorter term and higher payment of a 15 or 20 year mortgage suddenly becomes affordable.
From an amortization schedule you can see how long it will take for the added debts to be paid off. You can’t control the interest rate – the market sets that, but you can control the term.
Talk to one of our home loan experts or call us at (941) 405-1412 to see if this form of home loan refinancing is right for you.It’s important to keep in mind that your debt isn’t gone; it’s just in a new place.You need to remain disciplined in your spending and not overspend on your now “debt-free” credit cards.Consolidating your debt by refinancing is simply moving all your debt into one place: your mortgage.Doing this gets rid of differing due dates and various companies you owe to, putting all your loans and debt into one, easy to remember payment.When we review a client’s mortgage, we look at the credit report changes over the past year, the performance of the mortgage and the value of the house.