Consolidating debt into a home loan good subject lines for dating sites

When we review a client’s mortgage, we look at the credit report changes over the past year, the performance of the mortgage and the value of the house.

From an amortization schedule you can see how long it will take for the added debts to be paid off. You can’t control the interest rate – the market sets that, but you can control the term.

The Amortization schedule will vary based on the term of the loan and the interest rate. The real difference is with shorter loan terms – using a 20 year term pays off the $25,000 addition in just 3.8 years and a 15 year mortgage pays off $25,000 in only 2.5 years! If you are going to pay off debts and more importantly, stay out of debt, an accountability system is critical.

So, before you listen to the pundits that tell you to never roll your debts into a mortgage, consider the effect of the amortization schedule, the loan term, and the reason the debts exist and make the best decision for yourself.

This is another example of why I tell people to “Start with the House” to reach financial freedom.

The absolute best way to consolidate debts into a mortgage is to use the shortest mortgage term possible.

By eliminating credit card payments or auto loan payments, the shorter term and higher payment of a 15 or 20 year mortgage suddenly becomes affordable.In this example below, a client used a 15 year mortgage to pay off ,000 in credit cards and car loans.By eliminating the credit card and car loan payments, the borrower was able to use a 15 year mortgage and rapidly build equity in their house.Most credit unions offer their members flexible loan terms and lower interest rates than online lenders, especially if you have a low credit score.The maximum annual percentage rate at a federal credit union is 18%.Even is this borrower needed to finance a new car in a few years, the added equity in their house would exceed the new auto loan liability.

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