Doing this gets rid of differing due dates and various companies you owe to, putting all your loans and debt into one, easy to remember payment.In addition, your new mortgage interest rate is typically lower than the interest rates on your credit card accounts.And as long as you made all of your program payments on time, you typically shouldn’t have any credit damage.
If you reduce your debt by paying it off quickly after consolidation, then you’re in a better position when you apply for a mortgage.
So it most cases, debt consolidation is a good thing to do before you buy a home, rather than a bad thing.
Refinancing your home loan is a great way to get the money you need to consolidate all those bills and get rid of their high interest charges.
This mortgage is sometimes called a “cash-out” refinance, because you are getting cash out of your home’s equity to use for other things.
By consolidating your debt into a refinanced mortgage, you can save time and money.