Debt Consolidation Mortgage

Debt Consolidation Mortgage

A debt consolidation mortgage allows you to borrow from the equity in your home to pay off unsecured debts, like credit card debt and medical bills. Is it a good idea? That depends on your situation. Often your mortgage payment will go up or you'll have a separate payment for it each month. Granted, you'll use the money to pay off your unsecured debt, so you'll have the money you were paying towards that for the payment, but if you think there's the slightest chance you'll miss payments, don't do it. The collateral for a debt consolidation mortgage is your house, and if you miss payments, you could lose your house. However, if you're sure you won't miss a payment, you can lock in a lower interest rate with a debt consolidation mortgage, and that can save you big bucks in the end.

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