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How To Pay Off Your Mortgage Faster Through Debt Consolidation

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Debt could well go down as a man’s worst enemy. The psychological, as well as the emotional effect it has on a borrower, is gross.

With the elementary economics stating that human wants are insatiable and resources are scarce, debt becomes the aftermath.

When most people see things they will like to have and cannot afford at that moment, they begin to find alternatives to fund the purchase. For consumer goods, most of the times its always credit cards.

For housing more often than not, mortgages are the only way out. Just like debt is used to secure the purchase of a house, you want to get out of the debt quickly.

Over 10 million American families owed more mortgages than their homes were worth as of 2014. Ever since then, there was never a dull moment in the American economy.

Home ownership, in general, has increased monumentally since the peak of the 2007 – 2010 housing crisis. The increasing rates of interest, as well as the skyrocketing home prices, still haven’t kept most people away from acquiring theirs.

The overall consumer debt in America reached 13.3 trillion dollars in the last quarter of 2018 and mortgage debt reached a new high of over 10.3 trillion dollars.

Most financial experts advise that the safest bet is to avoid mortgage altogether. The basic and ideal starter for a home is 3 bedroom, 2 bathrooms in a decent neighborhood with quality public schools and nice sidewalks.

But the love for a Penthouse or a spacious crib in an urban area leaves many people mentally stranded. They often need to make a choice – purchase it straight up with a cash payment or obtain a mortgage to acquire it. Of course, the absence of huge cash stashed somewhere makes the latter the most suitable and this explains why a mortgage is the most popular debt in America.

How To Pay Off Your Mortgage Faster

In 2018 the US economy remained buoyant as usual and Americans experienced the lowest level of unemployment, tax law changes as well as trade wars in five decades.

The Federal Reserve was mindful of impending inflation hence as a precautionary motive, spiked up interest rate 3 times more.

The housing market at this time has witnessed an exodus with more people doing all they can to become homeowners.

As Americans continue to ride the highs and lows of the economy one thing has remained constant, consumer debt keeps increasing. Mortgage continues to lead the consumer debt statistics ahead of credit card debt and student loans.

A lot of people regard a home as the biggest collective asset a family has. While it is right to do all you can for outright ownership, paying off a mortgage can be a herculean task.

This issue begs for a way out and lots of homeowners have sought for a more convenient and comfortable means of payment. Based on this, a debt consolidation mortgage becomes an attractive option.

Debt consolidation in a mortgage is a proven way of paying off your debts in a simplified manner. The chances are that while you are servicing your mortgage, there are other unsecured debts like personal loans and credit card debts.

Juggling up several debts could be very daunting, add to that list mortgage, the combination of these is more than a handful for anyone to deal with. The best way to simplify your finances is to bring all your debts together.

The whole essence of debt consolidation is to ensure that managing your finances become easier and less burdensome. A debt consolidation mortgage when structured correctly could help you save a lot of money and offset your mortgage debt faster.

All outstanding debts are liquidated by one big loan and then the resulting loan is paid monthly at a lower interest rate. The new rate payable is usually lower than the previous interest of your mortgage and all other debt combined.

Rather than paying off several loans at different interest rates and of course several lenders, all you are left with is one loan, one interest rate, and one regular payment as well.

Consolidating Your Mortgage

The obvious benefit of consolidating your home into a loan is that all you have is just one repayment which can be easily monitored. Your overall finances also experience a major lift because the elimination of the varying interests makes you save a lot downwards.

Basically, the interest rate on housing loans is often lower than other lending option. This means that the merging of all your debts into a single home loan affords you a monthly payment very low in terms of interest.

Another trick is to pay your mortgage faster is to adjust your home loan repayments to match the amount you pay for all your individual debts. Taking advantage of the reduced rate of interest will help you pay your mortgage faster.

The amounts saved in interest can also be channeled towards making extra home loan repayments.

Its however important to always bear in mind that you may end up paying more interest in the long run. This is because typical home loans have a longer term which represents an extended number of monthly payments over time.

Consolidating your mortgage is just a faster means of payment, it’s also flexible and efficient due to the availability of mortgage calculators.

The mortgage calculator otherwise called home loan repayment calculator helps you keep track and see how much money and time can be saved.

Final Words…

Even if you have debts from multiple lenders, they can still be consolidated into one loan. Take for instance you have several personal loans from different providers, you can consolidate your debts and still offset the personal loan by adding it to your home loan.

Consolidating your mortgage is quite easy, all that is needed for a smooth process is to consult your broker, lending specialist or a home finance manager.

Their expertise is required to provide the necessary guidance through the consolidation process.

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