If the debts generated by your credit card have overwhelmed you, you may be thinking of consolidating them. If you have doubts about the possibility of consolidating credit card debts in mortgage credit, read this article.
What is a mortgage?
A mortgage loan is a loan granted by a financial institution for the purchase, expansion, repair or construction of a home. Then, it is a loan capital that is granted to you with a specific established purpose. You cannot, therefore, dispose of that money to meet other obligations than those specified.
When you get a mortgage loan, you present your home as collateral, so you get a relatively low interest rate. This is because if you default on payment, the bank will foreclosure and appropriate your home.
What is a personal loan with mortgage guarantee?
Like the previous one, a personal loan with mortgage guarantee is a loan that you receive giving as a home guarantee. Only the availability of money may be different from that of a mortgage loan. In some cases, you can use it to consolidate your personal debts, in others for university study purposes. You can also access credits with free availability with mortgage guarantee, whose money you can use at your free will.
How can I consolidate debts using my home as collateral?
If you have already read the above information carefully, you will have concluded that your option is to apply for a home equity loan. It is not possible to consolidate credit card debts in the mortgage loan, because of the above.
In fact it would not be a good strategy to apply for a mortgage loan, having debts to consolidate on your card. This would limit your borrowing capacity and insurance would cause your application to be rejected.
It is highly recommended that before opting for a personal loan with mortgage guarantee, analyze other alternatives. Employing a home loan guarantee can literally mean that you mortgage your family’s future.