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Consolidating debt with a new purchase mortgage

On-time payments will build credit score, Before you refinance, clean up your credit score We encourage an active and insightful conversation among our users.

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C., said debt consolidation comes up “pretty frequently” with her clients.If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings.By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.It was their third refi since buying their house in 1995 and, this time, they hired a professional adviser.Since much of their credit card debt went toward home repairs, he convinced them to take out an extra $20,000 to stash away as an emergency fund. While the couple's mortgage payment increased by $175 (they were hoping to reduce their rate from 6 1/8 to 5 percent, but their broker locked in late), they netted $700 in monthly savings.Whether or not refinancing their debt proves a smart move may depend on whether they take the next steps: Whether you decide to consolidate debt into a home loan or chip away at it the old-fashioned way, have a plan in place.

Cutting back on your lifestyle and changing spending behavior "takes sweat," says Huettner.

“Most of my clients have credit card debt,” she said.

“It can be really overwhelming when you have five credit cards to pay and you don’t even know where to start.

Their adviser also helped them design a plan to avoid future debt and pay off their mortgage early.

"It's extremely helpful to have a good adviser," Gayle says.

With mortgage rates still near historic lows, consolidating credit card debt in a refinance can substantially lower monthly expenses. With their savings dwindling and credit card debt mounting, they looked to their most valuable assets: their center-city Philadelphia home and a second house they were renting out.