Question:

What is a debt consolidation mortgage loan?

Answer:

A debt consolidation mortgage loan is a loan designed to consolidate your different debts into a single low rate affordable loan taken against your property. You can consider doing a debt consolidation mortgage loan if on top of your existing first mortgage and / or second, you have to pay a bunch of other bills such as high-interest credit cards, car loans, college, etc. Debt consolidating will allow you to refinance an existing mortgage loan into a new one that will include all other bills you have to pay.

Usually, debt consolidation mortgage loans will have lower rates and payments will be spread over extended period. This way you will only have to make one lower monthly payment. Thus, you don't run a risk of incurring late fees on your cards as payment is rolled into the mortgage monthly payment. However, if you are a bad credit case, you may not get the most beneficial debt consolidation mortgage loan rates.

If you are on the verge of foreclosure or bankruptcy, even if your credit is far from perfect and debt consolidation rates are not the best offered around, you still might prefer to sign in for a debt consolidation mortgage loan in order to avoid showing bankruptcy on your report. Before you sign in with a debt consolidation mortgage loan company, it is your responsibility to run a check on it to avoid rip off.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: