Debt consolidation is often motivated by a desire, or a need, to reduce monthly payments.
It is generally possible to consolidate car loans, personal loans and credit cards into your home loan. The cash flow savings can be significant.
Be sure to carefully consider your options and be clear about your goals.
Your equity position needs to be strong. Ideally, your current home loan would represent less than 80% of your home’s value. If you are a first home buyer, entering the market with a minimum 5% deposit, you will not have enough equity to consolidate right away.
It’s important to weigh up the benefit of reduced monthly payments, with the increased interest costs over the longer home loan term. Even with a lower interest rate, you may end up paying much more.
Everyone’s situation is different. So, ask for some tailored advice and make an informed decision.
Mortgage Choice in Coolum Beach can help.
Contact Jodie today to discuss your debt consolidation goals. You can call at any time on 0407 646 792 or send an email to email@example.com.