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Mortgage Glossary

Debt Consolidation

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

Debt consolidation rolls several debts into one new loan. The goal is a lower rate or a single, simpler payment.

What Debt Consolidation means

Homeowners often use equity to pay off high-rate cards. That can cut the total interest they pay.

Florida example

A Florida owner combines card balances into a cash-out refinance. One payment replaces several higher-rate bills.

Combining debt into one

Debt consolidation rolls several debts into a single loan or payment, often at a lower rate. With a home, a cash-out refinance or HELOC can consolidate high-rate credit card debt.

The goal is one simpler payment and less interest overall.

Weigh it carefully

Consolidating card debt into your mortgage lowers the rate but stretches it over 30 years, so run the total cost. It also puts your home behind that debt.

We help you compare the real numbers. Reach out and we will see if consolidating makes sense for you.

Related program: Learn more →

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Related Mortgage Terms

Debt RatioDebt Service Coverage Ratio (DSCR)Debt-to-Income Ratio (DTI)
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