1. Debt Consolidation

Author: Boychuk Mortgage Group |

Debt consolidation is the process that provides you the opportunity to use your existing equity to pay off your high-interest consumer debt, while borrowing that money (equity) at a far lower interest rate in the form of a mortgage. If your lender agrees to it, they will pay off your debts along with your previous mortgage and combine all your payments into a single monthly mortgage payment at a lower interest rate. Refinance rates tend to be far lower than other debts. For example:

  • Credit card debt

    A. Credit card debt can be at

    21.99% Interest

  • Retail store debt

    B. Retail store debt could be above

    27% interest

  • Car loan debt

    C. Car loan debt is between

    5% to 7% interest

  • Line of credit

    D. Line of credit is at

    4% to 7% interest