A mortgage consolidation loan is one in which you consolidate other loans into your mortgage. Loans such as auto loans or credit card accounts can be included in your mortgage, so you are paying one large payment rather than payments to several creditors. It may take you a bit longer to pay these off, but it can save you money on your monthly budget. This can be beneficial to those that are struggling to make all of their payments each month and have any money leftover for things such as food or entertainment. If you aren't sure if or when you should consolidate your mortgage, read on for helpful information to guide you.
You Have a Lot of Outstanding Loans
If you have a lot of loans outstanding, it can be difficult to keep up with all of those payments. Each payment can add up and take a lot out of your monthly budget. To help you keep up and to help you get these loans paid, you can consolidate them into the mortgage. You can change your mortgage to a longer loan period, or a shorter one, and you may qualify for a lower interest rate, which may end up saving you money in the long run.
You've Had a Job Loss
If you've lost your job or you've had to change jobs and you're now making less money, it may be in your best interest to consolidate your loans instead. This may be a better option than filing for bankruptcy, as filing for bankruptcy can leave you needing to turn over your assets. If you are able to afford to make the payment on a consolidated loan, it can you can keep your assets.
Your Loans Have High Interest Rates
If your other loans have higher interest rates, it may be better to consolidate those loans into your mortgage loan, which will most likely have a lower interest rate than most other loans, especially credit cards. Credit cards usually carry much higher interest rates, which makes it more difficult to pay them off.
If you aren't sure if you should consolidate your mortgage and include all of your other loans with it, you should talk to your mortgage loan officer about what other benefits there are to refinancing and consolidating your loans. Paying off these loans could also help clean up your credit, which can help you in the long run with your finances as well.
For more information on mortgage consolidation, talk to a mortgage broker in your area.Share