Consolidating debt with a mortgage

25 Feb

Indicate you want to include debt in your new home loan at the time of application.

When you fill out the form, note the amount you wish to borrow.

Getting a mortgage while carrying significant other debt can put a serious strain on your finances. By consolidating your debt into your mortgage, you can move forward with the purchase while giving yourself the relief of spreading your other debt over 30 years.

Consolidation reduces the total monthly payment in this case mainly because of lower debt repayment.

The application will also have a section dedicated to listing each specific debt to be paid off with your loan.

List the creditor, the amount owed, the monthly payment and indicate that you want it included in the loan.

After 2007, higher down payment requirements made it very difficult.

House purchasers consolidating non-mortgage debt in a mortgage must make down payments large enough that their loan meets the maximum ratio of loan to property value after the consolidation.