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Four Major Benefits Of Mortgage Consolidation

30 April 2018 by Albane Francois

Debt is such a noose around the necks of adults that it can drive them to do desperate things. If you are reaching your breaking point with debt, maybe it is time to consolidate your debts via a mortgage consolidation loan. There are numerous benefits to mortgage consolidation, all of which you may find quite freeing.

Consolidate First, Second, and Subsequent Mortgages

Involved in this type of debt consolidation is not just your primary mortgage on your primary residence. If you own more than one home, or you own rental property on which you make a monthly profit but do not own outright, you can combine these mortgages all into one. The biggest benefit, of course, is that you will only have one mortgage payment to make on all of your properties, and that the interest rate on this loan is often lower than one or more of the interest rates of your properties.

Include Other Debt

Whoa! Now that is a benefit anyone can enjoy! Imagine taking ALL of your debt, combining it with your mortgage debt(s), and creating ONE monthly bill for everything! Your car, your properties, your credit cards, your hospital and medical bills and even your school loans (if you so desire) are all in one lump payment every month. As long as you do not accumulate other debt, you can continue to make one solid lump payment for your consolidated debt every month.

Boost Your Credit Score

You would think that by taking out such a huge loan to consolidate your debts that you would hurt your credit score. Actually, your credit score can get a massive boost. You are, in essence, paying off thousands of dollars of debt in one fell swoop to create a singular debt. All of your credit card companies show and reflect in your credit reports that you paid off your debts, your other mortgage holders consider you a better lending risk because you paid off your mortgages, and all of these positive reports show up on your credit report. 

Avoid Bankruptcy

When you cannot manage multiple debts and multiple payments on multiple days throughout the month, you may feel overwhelmed and turn toward bankruptcy as a solution. Bankruptcy should always be the last solution, especially if your credit is still reasonably good. By taking out a mortgage consolidation loan and consolidating your debt, you may avoid bankruptcy, and, subsequently, avoid bad credit.

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