Myfin
Is a Loan Needed When Consolidating Existing Monthly Debts?
Most people have a tough time with their mortgages. It doesn't help that the interest rates have been steadily rising or that most home sales are flat to below half of what they were in prior to the recession. For families already struggling to make ends meet, getting a loan may seem like an impossibility. Fortunately there are options for those who need a loan to help them with their mortgage crisis.
The often-referenced 29% rule states that you should not spend more than that percent of your monthly gross income towards your mortgage payment each month. Gross monthly income is the amount of money that comes in after all your expenses have been paid from your check at the end of the month. Lenders look at your gross monthly income, before they determine how much money you can reasonably afford to take out on a mortgage. If your income dips below this amount, then debt consolidation may be the best option for you.
Debt consolidation allows you to take all of your existing monthly debts and put them under one monthly payment. You can then use the proceeds from this new loan to pay off any existing debt you still owe. By paying off these existing debts with a lower interest rate and only using the money from this new loan to make your mortgage payment, you can save money while paying down your debt faster.
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