Debt consolidation loans
Debt consolidation is a refinancing technique where the borrower takes out a new loan to pay off credit cards, personal loans or other mortgages. A debt consolidation loan can sometimes help repair credit, secure a lower interest rate, reduce taxes or lock-in a fixed rate. Many borrowers also benefit from the convience of paying down debt within a single loan instead of managing multiple accounts with balances.
The Pennsylvania Mortgage Store offers debt consolidation loans on:
- new home purchases first time homebuyers can consolidate debts into a purchase mortgage
- home refinancing existing homeowners can refinance their first or second mortgage to include other debts
- second mortgages borrowers can take out a second mortgage instead of refinancing their first mortgage
To determine the best debt consolidation strategy, especially borrowers with existing mortgages, it is often useful to evaluate total refinance costs and savings in different scenarios. Here are some common debt consolidation scenarios, that may help you choose the right loan. Of course, these are just examples - you should contact one of our mortgage consultants to help determine the best refinance option for you.
