Mortgage Loans

General Information

Debt Consolidation Loans

Most consumers do not realize that it is difficult to obtain a debt consolidation loan without collateral.  Lenders simply do not take the risk of unsecured lending to consolidate credit cards unless the consumer has excellent credit and an acceptable debt to income ratio.  Each lender has its own criteria for "acceptable" and not "acceptable."  Through lenders in our network, you can obtain a mortgage with fair or even poor credit.

Narrow options in borrowing money to pay credit card debt force consumers to take out mortgages to pay off those credit cards and lower the interest rates.  Superficially, this seems to be a good idea since mortgage interest is tax deductible. However, there is a down side to mortgaging a home to pay off debt. Most credit card debt is unsecured.  This means that if the debtor is a homeowner and defaults on the credit card payments, the credit issuer cannot foreclose on the debtor to recover the lost funds.  When a consumer takes out a  mortgage to consolidate unsecured credit card debt, he/she is taking unsecured debt and converting it to secured debt.

In essence, a $15 T shirt that the consumer charged three years ago (which he/she now owes $50 on) becomes secured by the consumers home.  This only makes sense if the consumer shreds his/her credit cards, closes the accounts and never applies for another credit card until after the mortgage is paid off.  Unfortunately, most consumers take that mortgage out for 10 to 30 years.

Through debt consolidation without a loan, consumers can be out of debt in 4 to 5 years and can obtain credit cards at completion of the program.  By that time, they have learned to live without credit cards and don't need them.

If after reading this, you decide that you want a refinanced mortgage to pay off your unsecured debt, please complete our no obligation free quote form.  We will forward the form to a well known, trusted national mortgage lender who will contact you to assist you in achieving your debt repayment objectives.