Consolidating home and car loans
We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions.
The rates and terms listed on our website are estimates and are subject to change at any time.
This is why it is called “secured debt” — the money owed is supported by an asset. Even if you were to be declared bankrupt, the bank (or government) can’t come after you for your home, car, or other asset besides garnishing your wages.
Consolidating your student loans into a mortgage means your home becomes collateral for your student debt and is at risk if you are unable to keep up with payments.
By using a mortgage to pay off student loans, you can effectively cut down your payments from many to the magic number of one.
Con: Put It All on the Line As a homeowner, you are aware that if you cannot pay for your home, it can be foreclosed on and the house seized.
Con: Pay More Interest Over Time Saving on the interest can be a huge pro, but before you jump, you have to look at the numbers a bit closer — especially in terms of how much time is left on the loan.
Rolling student loan debt into a mortgage (also known as “debt reshuffling”), allows you to refinance your mortgage with either a new loan or an additional home equity loan.
The money from this new loan can then be used to pay off your student loan debt.
If you’re looking to get out from under your student loan debt, it’s important to think through any strategy that lowers your monthly payments.
This especially applies to the prospect of rolling your student loan debt into a mortgage.