Consolidating debt with initial morgage
Therefore, the total equity in your home is 5,000 (minus the ,000 to ,000 in realtor’s fees and transfer taxes you would incur in selling).This amount of money would pay off all of your debt.There are many ways to consolidate your credit card and other debt, such as with a 0% APR credit card, a home equity loan or a personal loan.
Consolidation works best as part of a larger plan to become debt-free; it shouldn’t just be a way to buy some breathing room.
If you are consolidating debt just to get a lower interest rate without really knowing how you’re going to pay the debt off, then you are simply moving the problem around instead of facing it.
On the plus side, the house you bought for $100,000 10 years ago with a 30-year fixed-rate mortgage is now worth $175,000.
You put 20 percent down at the time you bought the house, and now owe approximately $70,000 on it.
While rates will vary based on credit card and mortgage companies, a credit card can carry rates as high as 20 percent, while a mortgage can be as low as 3 percent.