Buying a house and consolidating debt
Spreading out debt over a term of 20 to 30 years can reduce your payments significantly.Additionally, mortgage rates tend to be lower than the interest rates on unsecured debts such as credit cards.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.Just know that you still must come up with a down payment and understand that your debt potentially will be with you for much longer.Carl Carabelli has been writing in various capacities for more than 15 years.He has utilized his creative writing skills to enhance his other ventures such as financial analysis, copywriting and contributing various articles and opinion pieces.Include the purchase price minus the down payment and the total amount of other debt you wish to include.Select a term and write down the information on the property you wish to purchase.
Most lenders will not approve you for a mortgage if your DTI ratio exceeds 43 percent. Learn more about how to calculator your debt-to-income ratio here.More importantly, the more debt you include, the more money you will need to put down.For example, if a bank lends up to 95 percent of the value of a property, you must put ,000 on a 0,000 loan.But one recent study caught my eye because it contained some good news for once. Homeownership isn’t just for “adults” in their 40s.Despite their well-publicized economic challenges, millennials represent the largest percentage of recent home buyers, according to the National Association of Realtors 2015 Home Buyer and Seller Generational Trends study. Here’s how you can stop paying rent and start paying a mortgage, if you so choose: You buy a house while in debt.