Home Refinance

Owning a home provides you with some attractive avenues for consolidating your debt. You may choose from a number of different options including a full home refinance, a home equity loan, or a home equity line of credit. Click here to see a list of lenders or lending services that offer a host of different programs depending on your needs. If you want to know what your monthly payments would be use our mortgage calculator.

However, before you take the leap, make sure that you are aware of the risks associated with using the equity in your home to consolidate your debt. If you are not certain of the risks associated with leveraging your home to consolidate debt, then seek the advise of a professional financial planner first

Risks

Consolidating debt by refinancing your home may not be the best use of the equity that you have accumulated in your home. It may seem like an easy solution but, that could spell trouble for those having problems controlling their debt.

The fact is roughly 70 percent of Americans who take out a home equity loan to consolidate debt end up with the same (if not higher) debt load within two years. In this case you are getting only symptomatic relief and not a cure for your debt problems.

If you don't address the underlying debt management issue you risk defaulting on your new home loan or line of credit and losing your home. So if you have a debt problem, see a credit counselor before you refinance and learn some strategies for controlling your debt.

The purpose of this site is to provide general information about issues involving consolidating debt . This site is not intended to substitute for professional financial or legal advice but instead is a general interest site where people can learn more about issues involving the subject matter.