Consolidating debt mortgage mortgage refinance

Reducing your interest rate not only helps you save money, it also increases the rate at which you build equity in your home, and it can decrease the size of your monthly payment.For example, a 30-year fixed-rate mortgage with an interest rate of 9% on a 0,000 home has a principal and interest payment of 4.62.One is the total monthly payment, which consists of mortgage payments, mortgage insurance premiums if any, and non-mortgage debt payments if any.Borrowers on tight budgets must be concerned with the monthly payment, but it should not be the major determinant of their choice.There are many reasons why homeowners refinance: the opportunity to obtain a lower interest rate; the chance to shorten the term of their mortgage; the desire to convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa; the opportunity to tap a home's equity in order to finance a large purchase; and the desire to consolidate debt.Some of these motivations have benefits and pitfalls.

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To help in answering it, I have developed three debt consolidation calculators designed for three categories of borrowers: *1a, Debt Consolidation Calculator For Home Purchasers, is for those about to purchase a house who may want to consolidate non-mortgage debt in the purchase mortgage.This not only simplifies the payments, but can also provide real debt relief by reducing those payments as well.A consolidation loan can reduce your monthly debt payments in two ways.Historically, the rule of thumb was that it was worth the money to refinance if you could reduce your interest rate by at least 2%.Today, many lenders say 1% savings is enough of an incentive to refinance.*1b, Debt Consolidation Calculator For Home Owners With One Mortgage, is for those with an existing first mortgage who may want to consolidate non-mortgage debt, either by refinancing the first mortgage to include the non-mortgage debt, or by taking out a new second.


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