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Mortgage - better off having credit cards, or loan?*

I have had a mortgage now for 2 years and its time to change. The problem is, is that I have built up a large sum on credit cards. I have been told it looks better to mortgage lenders if it is as a loan. Is this true?

Answers:

1) Mortgage interest is tax deductable, credit card interest is not. Worry more about paying less interest ,and getting more tax deductions.

2) i don't think was is any worse than the other. However, if you have enough equity in the home you might want to get rid of the debt by rolling it into your home loan. You could be paying upwards 17-20% on credit card bills.

3) Yes a loan, to payoff all your credit cards and have some left to spend or save.

4) Credit card debt is your number one enemy of building wealth. Pay them off by refinancing and cut them up.

5) Well, it’s not clear as to what type of mortgage you have. But I suggest that you go for a cash-out refinance for credit card debt consolidation such that your existing loan will be paid off and with the extra cash you’ll be able to pay down the cc debts. But it needs to be seen as to how much of your debts can be repaid using the extra cash. This depends on how much of cash you can pull out. If you have enough equity, it is quite possible! Besides there are other ways to consolidate your debts. Take a look at 4 such ways of using your home for debt consolidation at http://www.mortgagefit.com/debt-consolidation.html Thanks, Jessica, Mortgage mentor MortgageFit Community

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