Consolidating debt mortgage refinance dating calgary alberta

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By consolidating all your debts under your mortgage you will only have to make a single repayment instead of making multiple repayments each month.

In addition, you may end up paying less each month than you are currently.

It might seem as though there’s no relief from high-interest balances, but you can take steps to lower your burden.

For homeowners, one of them is to consolidate your debt and lower your monthly bills by refinancing your mortgage.

You may be tempted to consolidate your credit card and other high-interest debt into a mortgage with much lower payments. Lenders now require the homeowner to keep at least 15 percent to 20 percent equity after cashing out.

Today's debt consolidation mortgages are more conservative than those seen during the housing boom, when lenders allowed homeowners to refinance and cash out as much as 110 percent of the value of their homes.

This is because a mortgage loan is usually available at a substantially lower interest rate than the interest rate you pay on your credit cards or personal loans.

Consolidating the two into a new, 15-year mortgage at 4.5 percent costs more per month, but less over the life of the loan.

A ,000 credit card balance at 16 percent interest plus a 0,000 mortgage at 4.5 percent interest rack up 0,936 in interest payments over the life of the loans.

Those with enough equity in their homes have been able to substantially reduce the monthly payments on credit card debt, student loans and personal loans, says Michael Moskowitz, president of Equity Now, a mortgage bank in New York City."I wouldn't recommend it to someone who is going to run up their credit cards again," he says.

"If that's the case, you need financial counseling, but for people who will not do that -- who had medical expenses, business expenses and ran up their credit cards -- a debt consolidation mortgage is a good solution."He cites the case of a client who had a mortgage-free investment house and more than ,000 in credit card debt.

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