Consolidation Debt Loan Mortgage - Make it a Smart Money Move

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Consolidation debt loan mortgage is a process not to be taken lightly. There are issues to consider before acting up on the plan. When refinancing from a mortgage that is an adjustable rate to a fixed rate, there are some questions to consider.

What are the mortgage rates doing at the present? Are the mortgage interest rates rising or falling? If the adjustable rate mortgage may go higher than the mortgage that has a fixed rate, then it is time to go on a consolidation debt loan mortgage with a fixed rate. Just make sure that the plan is indeed a fixed rate with a lower rate than the current one.

When deliberating on this case though. think of how long you intend to occupy the home. Why? Because if you're only going to be in that home for a few years, do you think it is worth to refinance it? But if you will be residing in that home for seven more years or longer, it will be worth it to go the route on consolidation debt loan mortgage that is fixed rate.

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How about if the best route is to refinance the mortgage that is fixed rate to a mortgage that has an adjustable rate? The thing to consider here is the length of time you will be in your home. Most people move within nine years so what do you think is the best action to do with this type of scenario? This has to be thought of before going the route of consolation debt loan mortgage.

It follows that it does not seem right that you have to pay a higher interest rate on a mortgage that has a fixed rate for twenty or so years. It makes sense then to refinance to an adjustable rate mortgage. Not only will this give you a lower interest but also it will naturally lower your monthly mortgage payment.

Who wants to lower the monthly mortgage payment? That's a stupid question, isn't it? Of course everyone wants to lower the monthly mortgage payment. Well, anyway, how about this question? What percentage point of interest drop will do it for me?

Well. just a fall of 1/2 to 3/4 of a percentage point in the rate of interest will lower your monthly payment. You may be making too much monthly payment if you do not refinance. This is not a good money move. And good money moves are essential in our goal to go from debt into wealth.

Working to lower the monthly mortgage payment is something every mortgage holder should try to do. The above is not the only way to lower the monthly payment, did you know that? There are three ways that I know of and all of them are smart money moves. Here they are:

  • The simplest way is to refinance to a mortgage with a lower interest rate.
  • You can refinance to a mortgage where you will pay only interest. You can still pay some principal if you want. This will provide you the flexibility just in case you need the money for the children's college.
  • Changing the term of the mortgage can lower your monthly payment. How? Changing the term from a twenty-year mortgage to a thirty-month term will certainly do it.

You see these are some things you have to consider before any action that may not be good for you and your family in the long run. Being careful to research all things that will make the right choice will be such an empowerment. You will then be able to decide whether to go on the right consolation debt loan mortgage.


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