Advice on using mortgage loans to pay off credit cards
I need to pay off my credit cards and get me another car, should I take another mortgage?
Bill I need to pay off my car which is $4,000.00 and give to my daughter who is in college and then I need to pay off my credit cards and get me another car, should I take another mortgage on the escrow?
Keep in mind that debts such as credit cards are unsecured in nature, and it is never a good idea to take out a secured mortgage loan to pay off unsecured debt. In effect, you are going to put up your home as collateral against the loan.
Before you opt for a mortgage loan, my recommendation is that you should try to get a personal consolidation loan. If you can qualify for a personal loan with an interest rate lower than the average interest rates being charged on your current debts, paying off these debts with an unsecured debt consolidation loan could improve your financial situation. The problem with this type of loan is that, unless you have very good credit, the interest rate charged for an unsecured personal loan may actually be more than you are currently paying for your other bills.
I encourage you to visit the Bills.com Debt Consolidation Resources page at http://www.bills.com/debt-consolidation/ to read about the various debt consolidation options available to consumers and how an unsecured debt consolidation loan may be able to assist you. To determine whether or not an unsecured personal loan can save you money, you should contact several lenders to find out the interest rates they can offer you on an unsecured personal loan. If you find that the interest rates offered are less than the average rate you are currently paying on your debts, then you should strongly consider consolidating your debts with an unsecured personal loan.
On the other hand, you can look at getting a mortgage loan to consolidate your debts only if you are unable to get a personal loan with a lower interest rate than what you currently pay on your car loan and credit cards.
If you want an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at:Mortgage Refinance Quote
No matter what your credit situation or the type of loan you intend to borrow, the key to making sure you obtain the best loan available is to shop around with different brokers and lenders. Listen carefully to the terms being offered by each lender, take notes, and compare the available loans side-by-side. Once you have selected a loan, make sure that the amount of fees and interest you agree to at closing are close to the estimate provided when you first inquired about the loan. If a lender tries to force you into a deal you feel uncomfortable about, feel free to walk away and take your business elsewhere.
I wish you the best of luck in finding a loan that meets your needs. I hope that the information I have provided will help you Find. Learn. Save.