With the rise of consumer debt, an attractive mortgage option is the debt consolidation mortgage loan. With this loan buyers with significant consumer or personal debt can consolidate this debt into their mortgage loan. These loans offer the opportunity to gain control over your debt without resorting to a consolidation service whose aid can negatively impact your overall credit score.

Unsecured debts are not tied to any asset, and include most credit card debt, bills for medical care, signature loans, and debts for other types of services.

Additionally, the debt consolidation mortgage loan is usually at or near mortgage loan interest rates, which is significantly lower than credit card rates and personal loan rates.

Some lenders may reduce or suspend your payments for a short time, mortgage debt elimination shows you that when you resume regular payments, you will only have to pay an small additional amount toward the past due total.

Other lenders may agree to change the terms of the mortgage by extending the repayment period to reduce the monthly debt. Ask whether additional fees would be assessed for these changes, and calculate how much they total in the long term.

This is a loan against the equity acquired on your existing home and is offered at mortgage loan interest rates. However, the option exists for you to refinance your mortgage. Ask your lender or seek a new lender that provides the debt consolidation service.

By taking a debt consolidation mortgage loan, you are essentially placing your home as collateral against the debt. Before doing this, you must be certain that you can afford the consolidation loan payments.Failure to pay could cause you to lose your home. Additionally some lenders may require you to pay “points”, where each point is 1% of the consolidated amount. Be sure to discuss the specifics of your debt consolidation mortgage loan with your loan counselor.

If you were to purchase a $150,000 home with a $120,000 mortgage (80%), and you paid an interest rate of 9% for 30 years, you will have paid over $227,500 just in interest (in addition to the original $120,000). That’s nearly two times the cost of the home! Without mortgage debt elimination, you can pay-off your home, credit cards, car loans and other debts the slow, old-fashioned way and maybe end up with a few thousand dollars saved for your retirement years…or you can stop living Pay-Check to Pay-Check. Starting Today!