What Is Debt Consolidation?
Mortgage loans are used for a variety of purposes. While the main purpose is home buying, these loans are often used to help consumers consolidate and eliminate debts. If you have a home with some equity and overwhelming credit card or consumer debt, you might benefit from mortgage consolidation or debt consolidation loans. However, this process can be challenging since it requires full mortgage underwriting and verification by the debt consolidation company you have chosen.
Debt consolidation by refinancing your home loan has multiple benefits, depending on your circumstances. Some reasons that you may look to do this include:
- It could help you manage a range of other short-term debt solutions that usually attract a higher interest rate. This could include existing Credit Card, Store Card or Personal Loan debts.
- The ease of managing a single loan gives you a regular repayment amount
- Unlocking equity at a lower rate could be a smarter way to fund renovations on your existing property
What are your goals?
- Are you refinancing to reduce your interest rate or to pay off your loan faster?
- Are you looking to access the equity in your current property for renovating, to purchase an investment property or because you want to free up some extra cash?
Home loan interest rates are generally lower than the interest rates charged on credit cards or personal loans, so by rolling these debts into your mortgage, the total amount that you have to repay each month will reduce. You should consider debt consolidation loans to refinance when you have high rate credit card debt and a first or second mortgage above 5%. With fixed mortgage rates starting at 4% there is a significant opportunity for you to lower your monthly payments and increase your savings!
Example Scenario 1: Before consolidating your debts*
|Type of loan|
|Car loan / Lease|
|Credit card 1|
|Credit card 2|
Example Scenario 2: After consolidating your debts into your home loan*
|Type of loan|
In order for debt consolidation loans to work properly and to have the most beneficial effects, it’s essential to avoid accumulating additional debt. Otherwise you may find yourself in an even worse position with credit card payments and loan obligations on top of your already refinanced mortgage payment; this can lead to serious financial problems including defaults and even bankruptcy in some cases. Debt consolidation through mortgage refinance should be viewed as an opportunity to begin again financially and to make responsible budgeting choices, not as a chance to begin the cycle of excessive debt once again. For most people, consolidating all their debts into their monthly mortgage payment can provide the second chance they need, allowing them to handle their current financial obligations and to build a more secure financial future.
The GLM Mortgage Group can help you understand the pros and cons of refinancing credit card debt with a secure home loan. Now you can consolidate 1st and 2nd mortgages and refinance your debts and loans or take out a second mortgage to finance cash for credit card consolidation and reduced monthly payments. Our team will help you select the right debt consolidation company for refinancing regardless of your credit score or poor credit history.
Refinance your 1st Mortgage and home equity loan together for one low payment! The beauty of using a mortgage brokers is that we customized your mortgage for you personally and at no cost! Call GLM Mortgage Group to get more information, we are here to help you.
What is the GLM Mortgage Group?
GLM Mortgage Group, powered by Dominion Lending Centres, is your Vancouver and Lower Mainland Mortgage Brokerage service. We are always ready to move forward with you to obtain the mortgage you need with the sharpest mortgage rate available. Whether it’s a fixed rate or variable rate mortgage you are after, we are dedicated to finding the best mortgage rates in Vancouver, including Home Loans, Consolidation Loans, Lines of Credit and more. No matter what you need, our team of Mortgage Specialists will follow through to find the best mortgage product that fits your individual circumstances. Our free online mortgage calculator keeps you informed on how much your mortgage payment will be as well as show how different mortgage rates will affect the mortgage you require.As your Vancouver mortgage broker, GLM Mortgage is committed to clear communication with our clients. We make sure you are informed on all the mortgage options available to you. We call you back within 90 minutes to make sure that you have the fastest service available. We are not only available in Vancouver and the Lower Mainland, we are also available across Canada.GLM Mortgage Group is your Vancouver mortgage specialist. With over 22 years of experience in the investment industry we know how to wade through the challenging process of getting a mortgage. We provide smarter options to putting your mortgage in place. We know how important it is to have an experienced professional Mortgage Specialist available to walk through your mortgage experience and stay with you through to the very end.We get you a fast “YES” at the sharpest rate… guaranteed! Call us now so that you can get that mortgage you’ve been waiting for. We already have been working for you, making sure that you will have every option of a mortgage available to you. GLM Mortgage Group is on call for you!