A refinancing, debt consolidation mortgage, has become a very popular way to bundle all of a person's payments and debts into one easy payment each month. This type of a loan has some great benefits. The top 3 benefits of refinancing your mortgage to consolidate your debts

Benefit #1 - You will only have one payment each month.

Benefit #2 - You can usually save thousands of dollars by refinancing.

Benefit #3 - You will no longer have these debts on your credit report.

Refinancing to consolidate debts will completely eliminate the debts that you roll into your mortgage. This can drastically reduce your monthly payment and in the process clean up your credit report. Once you clean up your credit report by consolidating your debts your credit score will raise. Then, you can get a lower rate on new credit cards, loans, and even on your next refinance. Here are some factors you should consider when deciding if consolidation is right for you.

• Are your monthly payments manageable?
• Too many monthly payments driving you crazy?
• What are the interest rates on your loans?
• How much are you willing to pay over the long term?
• How many payments do you have left on your loans?

You should start by assessing your income, fixed (regular) expenses, and variable expenses to find a solution that meets your budget. After evaluating your budget, you should also consider your assets and other liabilities - to see if you can borrow against your home, 401k plan, or other assets to eliminate high interest debt. If you feel that you cannot solve your debt problems on your own, you should seek debt consolidation counseling, which is available for more comprehensive assistance.

A mortgage consolidation & refinancing calculator will help you to decide whether or not it would be advantageous for you to consolidate a first and second mortgage and refinance into a single mortgage with a lower interest rate. Not only will the calculator calculate the monthly payment and net interest savings, but it will also calculate how many months it will take to break even on the closing costs.