The Monthly Payment and Debt Consolidation
For someone who is getting a second mortgage loan because
they want to consolidate high interest credit card debt,
their ability to make the monthly payment on this additional
loan is often not as big of a concern as it is for individuals
who take out a second mortgage loan because they have
to deal with an unexpected expense.
This is because people who use a second mortgage loan
as a means to consolidate debt and avoid paying a lot
of interest are often already accustomed to making minimum
monthly payments on several credit card accounts. These
payments often add up to as much or more as the amount
the person will be paying on their second mortgage loan
every month. In many cases, people in this situation
actually save money in their budget every month.
To figure out if getting a second mortgage loan will
lower your monthly payment, try using an online mortgage
calculator. A quick search will direct you to several
web sites that offer them to use free of charge. Input
the amount you would like to borrow, the length of time
the loan will last, and the interest rate for which
you think you might qualify. The calculator will return
an approximation of your monthly payment on such a loan.
Now, total up the amount you pay each month on your
various credit cards, student loan payments, store accounts,
etc. If this amount is significantly lower than the
amount you would be paying monthly on a second mortgage
loan, taking one out would likely be a money-saving
move in more ways than one – saving you cash each
month and in the long run.