If you have several loan payments you are making each month in addition to your regular mortgage payments, and if the interest rates on those other loans are higher than your mortgage, maybe it might be time to re-evaluate your loans.
- The benefits of consolidating all your loans into your mortgage are as follows:
- A much lower monthly interest rate means your debts will now fall under
- Lower monthly payments
- The comfort and convenience of making only one monthly payment
- Improve credit score from making all your payments on time
The following is an example of possible current situation where you are making several monthly payments, totaling $2,487.37 each month.
| Debt | Amount | Interest | Payment |
|---|---|---|---|
| Mortgage | $215,000* | 4.50% | $1, 355.37 |
| Visa or MC | $20,000 | 18.5% | $600.00 |
| Car Loan | $20,440 | 4.6% | $382.00 |
| Dept. Store Card | $5,000 | 29% | $150.00 |
| $260,440 | $2,487.37 |
* With mortgage amortized over 20 years
The following table shows all your higher-interest-rate loans rolled up into your mortgage, and now you would be paying one single, lower payment of $1,561.63 each month.
| Debt | Amount | Interest | Payment |
|---|---|---|---|
| Payment | $265,440** | 3.69%*** | $1,561.63 |
** With the same 20-year amortization and adding $5,000 for an early repayment penalty.
*** Rates subject to change
In this example, that is a monthly savings of $925.74!
Now all that’s left is to figure out precisely which solution is best for you, and wipe out all those high-interest payments. You already have the mortgage, so if you also have some high-interest debt you’d love to unload… call me today!