Learn more about when to consolidate and refinance federal and private loans.
Debt consolidation through a cash-out refinance mortgage involves taking out a new loan to pay off other loans, such as student loans, auto loans, personal loans, medical bills, credit card balances, or other credit accounts.
What you can't roll into a consolidation loan are ongoing bills and debts - the type where you incur new charges every month, such as gas, electric, cable TV, Internet, phone service, rent and the like.
However, if you've fallen behind on any of these and need to get caught up, you may be able to pay off your past due balances with a debt consolidation loan.
If you find yourself deep in debt, the options for digging yourself out can seem overwhelming.
It is easy to fall prey to debt solutions that can put you in an even worse position.
A personal loan for debt consolidation can help eliminate debts faster and put you back on the right track.A consolidation loan can reduce your monthly debt payments in two ways.First, you may be able to get a lower interest rate on your consolidation loan than you were paying on your various other debts.Some loan programs limit the amount you can borrow to 80% of the home’s value, while others will allow up to 95% or more.The current value of the property will be determined by an appraisal conducted by a licensed, third party appraiser.