Consolidation Process

• 1). Tell your mortgage lender you want a consolidation loan. A loan officer will take an application and examine your credit report to get a picture of your financial condition.
  
  
• 2). Tell the loan officer which credit cards you want to roll into your mortgage. The lender will review your debt-to income-ratio.
  
  
• 3). Choose a loan term that works and understand your interest rate. A fixed interest rate will make ensure your payment does not change. A variable rate could be lower but could rise in the future. A combination of a fixed and variable rate is also a possibility. Those rates are usually fixed for a set number of years, and then become variable.
  
  
• 4). Review all fees. If you are offered a loan, make sure you understand costs such as points, title search and an appraisal fee. An appraisal will determine if there is enough equity to consolidate your debt.
  
  
• 5). Let the lender pay your credit cards directly. Don't close your credit card accounts after they have been paid off.