Consolidate Mortgage Intelligently

2007-03-08 10:33:40

( Financial )



You may have different debts from many sources, and think it’d be more convenient if you could consolidate loan so you remit payments to only one lender. It’d be even more convenient if the loan comes with a lower interest. In short, you’d like to consolidate mortgage.

You’ll find mortgage loans very attractive because mortgage interest rates are lower – rates should be lower since your house is the collateral. The other benefit if you consolidate mortgage is that mortgage interest is tax-deductible. You will also like the convenience of making fewer payment transactions.

When you consolidate mortgage into one loan, you are converting mostly unsecured debt (like credit card debt) into secured debt. Just be aware that in doing so, you increase the amount of claims against your house and, therefore, increase the risk of losing it in the event that you falter in making payments.

Your total monthly payments are likely to reduce after you consolidate loan under mortgage loans contract. It is best to restrain the natural tendency to build up credit card debt or other unsecured debt all over again. That will really get you into so much debt that will be more difficult to pay off. But having decided to consolidate mortgage anyway, do shop around for the best mortgage loans.

If you think you can be considered a prime borrower, Ditech loans can probably offer you good arrangements. Ditech loans will take a long hard look at your disposable income, to make sure that you will remain comfortable after all your monthly obligations, including payments to the new mortgage loans, are paid. Your application will pass through a rating form, where you must get a minimum number of points in order to qualify for Ditech loans.

If you think you need more money out of your house, Ameriquest loans will be willing to lend you 125 percent of the value of your house. This means that after appraising your house, Ameriquest loans agents will calculate its actual loan value then add another 25 percent. When the lender proceeds to consolidate mortgage under this arrangement, the loan is classified as sub-prime because a portion is unsecured. Look at the mortgage loans contract and the fees very carefully, however, to check if things that you did not agree to are included.

Whatever you decide after thoroughly evaluating the options, make sure to use the money wisely. Since you will be saving on interest payments, you should consider using the money you save to accelerate payment. Perhaps you can arrange to shorten the term of the new mortgage loans you have taken, such that your new monthly payment remains about the same as the old. In that way, you pay off your debt faster without having to make any adjustments in your monthly cash flow.


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