Refinancing Your Mortgage is NOT debt elimination
What do I hear a lot? I'm going to refinance my mortgage and pay off my credit card debt, which will lower my payments. (Listening to a mortgage broker who is going to make a huge commission when you do this is dangerous!)
What you are really doing: Moving unsecured debt to secured debt-against your most important asset-your house. Now, if you can't make a payment, they can foreclose on the roof over your head.
You did NOT eliminate any debt, you have just restructured it and if you restructed it into a new 30-year mortgage, you will be paying off that same debt over the next 30 years. It might be at a lower interest rate, but you need to study your loan ammortization schedule and see what this new 30-year plan costs you. That mortgage broker may not be your friend - remember, his/her first interest is padding his/her pocket.
Your least cost option? Submit the debt to arbitration, eliminate it with no interest cost over the next 18-39 months.
Also, talk to us about how you can use a MMA to eliminate your mortgage in half the normal time.
Labels: arbitrate debt, clean your financial house, credit counseling, debt arbitration, debt assistance, debt consulting, debt payoff.debt help, get out of debt, MMA
posted by Roger & Pamela Foulks @ Sunday, October 28, 2007
1 comments
1 Comments:
Yes Roger, I agree with you on this! You can never shrug off your mortgage just by refinancing it. In fact, debt elimination is an abstract word and is only possible in an ideal world and using magical strategies. Well, debt elimination can be done and only by filing for bankruptcy. All your debts can be discharged in Chapter 7 bankruptcy as per the US Bankruptcy Code. Otherwise, there is no alternative, you can just reduce your debt burdens to some extent and nothing else. Read more to have some knowledge of Chapter 7 bankruptcy and how the processes are held.
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