ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Consolidate Your Debts With a Mortgage Refinance

Updated on August 14, 2008

A homeowner that is fighting with and juggling debts is getting really stressed out. Besides the immediate problems the possibility of a bad credit report looms large in his horizon. He’s dealing with penalties and high interest rates. This homeowner needs another choice. This homeowner may want to look into an adverse credit re-mortgage.

This means that he gets a new mortgage and uses some of the money to pay off his debts or the mortgage he already has. His property can be used as collateral so the lender feels comfortable that he will sell his house and pay the new loan, if he can’t repay otherwise. The interest on re-mortgage loans is lower now and because of so much bad credit new ways to help homeowners have been tailored.

This allows the consumer to consolidate his debts and he gets a lower interest rate so it is easier to pay off. The best person to speak with about an adverse credit re-mortgage is a specialist mortgage broker. This broker knows how to research the market to find the best deal for the homeowner. He can be the homeowner’s advocate to his lender and he’ll paint the best picture of the homeowner’s situation to get his client the best deal from the adverse credit re-mortgage lender, though the homeowner will have to be able to handle the payments. He won’t negotiate something the homeowner can’t handle.

He may be able to even negotiate better terms for the client like reducing restrictions on his mortgage. The specialist mortgage broker is will informed in all types of loans and loss litigation and interest rates. He has the ability to be objective and get the homeowner the most promising deal for his scenario.

The consumer can use this plan to pay off credit card debt or a personal loan. Mortgage interest rates are usually lower than credit card or personal loan rates. To be eligible for a re-mortgage loan the homeowner has to have some equity. That means that the present value of the homeowner’s property has to be higher than his mortgage. If he does consolidate his debt this way then some of his equity will be deducted and more debt will be added to his mortgage. Thus, the total of his home loan is increased and this has to be accounted for by higher monthly repayments or he’ll have a longer term for his loan.

In the process of working out a re-mortgage the homeowner’s loan many times goes to another lender. Typically a mortgage is fixed for about two or three years in todays market. Then the homeowner must choose a different mortgage package or his mortgage will return to the lender’s standard variable rate.

Before a consumer decides to use this plan to pay off unsecured debts it is wise to remember that he’s putting his home in jeopardy if he later can’t repay. The consumer is advised to look around for the best rates. By doing so he can avoid debt consolidation loans which have higher interest rates than a remortgage.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      Airsoft Gear 

      10 years ago

      Great article! What kind of consolidaton terms are they offering these days in light of the mortgage forclosure crisis?

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)