High interest debt on credit cards, auto loans, or other consumer loans can be difficult to pay off and may create a barrier to your financial goals.However, if you're a homeowner, you have additional options to help you manage your debt, including a debt consolidation mortgage and home equity loan or line of credit.
This will allow you to greatly reduce your payments in many cases.Here are some advantages of doing this: #1 Cut Down Number of Payments For most people, the two largest bills every month are the mortgage and student loan payments.This means at tax time, you can reduce the amount of your taxable income by the amount of interest you have paid for your mortgage and student loans.For many Americans, the interest that you are paying on these two items can be ,000 a year or more.As a homeowner, one way to start managing some of your higher-interest debt is to refinance your existing mortgage with a debt consolidation mortgage.
For example, the CIBC Home Power Mortgage allows you to borrow additional money on your mortgage so you can consolidate your debts into one simple payment.
This concept is not for everyone, but it can make sense for some students who want to enjoy a lower interest rate and monthly payment.
How It Works By rolling your student debt into your new mortgage, you will be able to refinance your mortgage with either an entirely new loan, or you can add a second mortgage or home equity loan.
That way you can easily budget with a structured payment plan and an assured pay-off date.
Find a mortgage that's right for you using our mortgage product selector.
To take advantage of this savings, you will need to have good credit so that you qualify for the lowest interest rates.