Can i consolidate my credit card debt&auto loan into my mortgage?
On One Hand: It Can Be DoneWith a cash-out refinance mortgage, you can consolidate other debts, such as credit card and auto debt, into a long-term mortgage to reduce the overall interest rate paid on the debt and to lower the overall debt payment for your budget. You can complete a cash-out mortgage refinance if you have enough equity built up in your property.On the Other: It’s Not a Good IdeaWhile reducing your overall debt payment seems like a good way to get out of debt, you are taking a short-term debt and making it a long-term debt. The interest rate on the mortgage debt will be lower; however, the debt is repaid over a 15- to 30-year period, charging more overall interest over the life of the loan. It is better to attempt to repay the debt in the short term to reduce the overall interest paid.Bottom LineLook at your total debt picture to make the best decision for your family. While combining all of your debts may lower your overall monthly payment, it lengthens the term of the
