Question:

How are debt consolidation options related to first and second mortgages?

Answer:

The question to arise about debt consolidation options and first and second mortgages is often should I take a stand-alone refinance of my first mortgage to consolidate existing debt, or should I take a separate second mortgage.

How to decide on debt consolidation options with first and second mortgage loans?

If current market rates are lower than your existing first mortgage rates, it most always will prove better to refinance your first mortgage separately and utilize the existing lower rates.

If market rates are higher, taking a second mortgage for debt consolidation is likely to be the better choice.

However, there are more factors to affect your decision. For example, your tax bracket, your first mortgage LTV and remaining term, whether and not you are paying PMI, etc. have to be considered to make an adequate decision.

It is advisable you approach a personal finance advisor to help you with the right debt consolidation decision.

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Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Common misspellings: mortage and morgage