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    debt consolidation mortgage loan

    what is the standard interest rate for debt consolidation mortgage loan?

    #2
    Originally posted by rogers View Post
    what is the standard interest rate for debt consolidation mortgage loan?
    There is no standard rate. It depends on your LTV, whether you are borrowing on a first or second mortgage, whether it is fixed or variable, length of the loan, and of course your credit score.

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      #3
      It all depends on the type of loan tool that you are using. There are many types of debt tools that you can use for debt consolidation:

      Home equity line of credit
      Home equity loan
      Credit card with balance transfer availability

      There are some loans marketed as debt consolidation loans, however those are really just home equity products or personal loan products that have been repackaged. Personal loans usually carry higher rates, especially for debt consolidation, because they are seen by lenders as being highly risky.

      It will depend on your loan product that you use, your loan-to-value, the amount of credit that you borrow, the term of the loan, and in a lot of cases what the loan will be used for. The lender will likely use your income as a factor as well. The lower your income in comparison to your debt, the higher the rate that you will be charged.

      Put yourself in the shoes of the lender. If you were lending money to someone for purposes of debt consolidation, what information would you want to know? What information would be important to you when determining a rate to charge?

      There is no such thing as a "standard" interest rate as no two debt consolidation situations are exactly the same (at least, it is HIGHLY unlikely that they would be exactly the same).
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        #4
        Aere you considering adding consumer debt to a mortgage application or fr-financing a mortgage?
        Last edited by snafu; 05-26-2014, 03:12 PM.

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          #5
          Originally posted by rogers View Post
          what is the standard interest rate for debt consolidation mortgage loan?

          It depends on what type of loan you are using. Their is no standard form for debt consolidation mortgage.

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            #6
            Originally posted by rogers View Post
            what is the standard interest rate for debt consolidation mortgage loan?
            There s no fixed standard interest rate for debt consolidation. It will depend on your debt. some companies offer 8.25% interest. You can also calculate your interest rate by putting values in this formula
            weighted average rate= total per loan weight factor/total loan amount * 100

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              #7
              OP, tell us more about what you are looking to do. What type of debt are you consolidating? The last thing you want to do is to move unsecured debt (credit cards) to secured debt (mortgage). If you don't pay unsecured debt, the worst they can do is sue you. If you don't pay secured debt, you can lose your home.
              Steve

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