Consider these 5 things before you consolidate debt into your mortgage.
1. Speak to a Loan Officer first.
Make sure that if you are increasing your current mortgage balance to pay off your credit cards or other debt, you talk to a professional. They can help you determine upfront if this is something that is right for your situation.
2. Check to see if your interest rate is reduced and make sure you’re lowering your payment.
When you consolidate credit cards or other debt, you want to make sure you’re going to end up with some cash flow and reduce your rate.
3. Choose the right term for your new loan.
Remember, that when you add your debt to the loan, you may be rolling it into the loan amount for a longer period of time. For example, 30 years may be stretching your debt too far but creates a lower payment.
4. Put a plan in place to pay off your debt after closing.
Once the refinance is complete, you will have extra cash flow that can be used to pay down your mortgage or other debts more quickly. Have a plan to get out of debt as soon as you can.
5. Homeowners who have high loan-to-value need to think twice about rolling in debt.
Be careful not to leverage your home too high and put yourself in a position where you cannot sell your home or pay it down in the future.
Calculate the effect of combining other debt with your home mortgage. If you select Credit Card, Auto Loan,
or Other but leave the interest rate blank, the calculator assumes a rate of 17.5%
Debt Consolidation Calculator
The information provided by these calculators is for illustrative purposes only. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results. The calculated results are intended for illustrative purposes only and accuracy is not guaranteed.
Choose a program that might fit your Consolidation needs.
- Looking for a more traditional option? Choose from the most competitive rates available.
- Maximize your monthly income by changing the term of your loan.
- Potentially save thousands in interest over the first 5 to 7 years by selecting an ARM over a traditional fixed mortgage
- Refinance into the security and low rates of a fixed-rate government loan.
- Qualify with less stringent qualification and credit requirements.
- Access to all fixed-rate terms.
- Lower your rate and payment if you are a spouse, military member, or qualified veteran.
- No monthly mortgage insurance (PMI).
- Fixed-rate and adjustable-rate program options, including jumbo loans.
Why you should choose Starwest Mortgage for your home purchase:
- As a broker, Starwest gives you access to the most competitive rates, fees, and programs the wholesale lending industry has to offer. Why use a broker?
- No Closing Cost program
- Get loan status updates anytime, anywhere. Take advantage of our online tools.
