Consolidating multiple mortgages
If you can’t stop spending on credit cards, for example because you’re using them to pay household bills, this is a sign of problem debt.
It is possible to combine the mortgages from two properties into one mortgage.
You might be offered a secured loan if you owe a lot of money or if you have a poor credit history.
You should get free debt advice before you consider taking out a secured debt consolidation loan, as they’ll not be right for everyone and you could just be storing up trouble or putting off the inevitable.
Millions of homeowners have taken advantage of the equity in their home and financed second mortgages in the form of home equity loans or home equity lines of credit – therefore, it’s not uncommon for homeowners to have two mortgages.
In many cases, this secondary loan has helped the homeowner avoid private mortgage insurance or the effect of raised interest rates that were applied to jumbo loans.
The rate/term refinance (refi) will be important to weigh.To come out ahead, you need to find a consolidation loan with a low interest rate and a reasonable term.You can consolidate using a personal loan or a balance transfer credit card.You borrow enough money to pay off all your current debts and owe money to just one lender.
There are two types of debt consolidation loan: Debt consolidation loans that are secured against your home are sometimes called homeowner loans.
The reality, however, is that the vast majority of people who use consolidation to pay off credit card debts go on to run up debt again - ending up with both the original consolidated debt and a new credit card debt.