Debt Consolidation

These types of loan programs are utilized to leverage equity and help a homeowner that us burdened with escalating monthly payments to credit cards and to group them all together. This way the credit card debt obligation has been transferred into mortgage principal. What are the advantages?

1. The classification, or type, of interest gets transferred from Unsecured to Secured. Per the IRS.GOV website. The interest payments made monthly now become Tax Deductible where unsecured credit card interest is not tax deductible.

2. This now frees up the expenses each month relieving the homeowner of stress of payments each month

3. Did I mention the homeowner/borrower gets relief of one month mortgage payment

4. Most of the time escrow accounts that are negative due to rising taxes and insurance get reset

5. Now that Tax Deductible interest has slightly increased with a higher loan amount,