1. Debt Consolidation
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:
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A. Credit card debt can be at
21.99% Interest
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B. Retail store debt could be above
27% interest
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C. Car loan debt is between
5% to 7% interest
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D. Line of credit is at
4% to 7% interest
