Consolidating your debt into your mortgage
"I would only suggest this as a last-gasp strategy," says Susan Reynolds, author of "One-Income Household." "In general, rolling credit card debt into mortgage loans is not a good idea. If you renege, they can pester you for payment and ding your credit report, but they cannot confiscate your home." Todd Huettner, president of Huettner Capital, a mortgage brokerage specializing in debt consolidation, advises homeowners to answer three questions before rolling debt into a home loan: After working with nearly 5,000 families, Susan White of Plan Plus Inc.You will pay significantly more in interest over the life of the homeowner's loan than you would if you chipped away at your credit card debt over a period of three to five years. has her own reasons for advising against rolling debt into home loans." Both couples timed their refinancing well, taking advantage of this year's low rates and lending flexibility.Not only are they spending hundreds less each month, they turned car and credit card payments into a tax-deductible home loan. "This is the beginning of their effort to get rid of debt, not the end," says Todd Huettner, president of Huettner Capital, a mortgage brokerage specializing in debt consolidation.Whether or not refinancing their debt proves a smart move may depend on whether they take the next steps: Whether you decide to consolidate debt into a home loan or chip away at it the old-fashioned way, have a plan in place.
Please help us keep our community civil and respectful.You get the convenience of rolling all your debts into a single monthly payment, which is often lower than what you were paying before, due to a lower interest rate, a longer repayment period or a combination of both.A mortgage-based debt consolidation loan can be a good option for a number a reasons.With mortgage rates still near historic lows, consolidating credit card debt in a refinance can substantially lower monthly expenses. With their savings dwindling and credit card debt mounting, they looked to their most valuable assets: their center-city Philadelphia home and a second house they were renting out.
Three years after Ray left an executive position, he found himself earning a fraction of his former income, while his self-employed wife, Jo Ann, struggled to make up the difference in a faltering economy.If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings.