Debt Consolidation Loans

The rates on a variable loan will be tied to an index, such as the London Interbank exchange (Libor) or the 12-month MTA (monthly Treasury average). Credit card debt is not advisable for long-term debt carry. The rates are very high and the penalties for late payments are extreme. The Debt consolidation loan can either be a complete rewrite of the first monrtgage or a subordinate loan behind the first mortgage on the home or property. To calculate the 'blended' rate of a first and second mortgage, you must determine the relative percentage of each loan and the 'weight' the two figures to calculate the actual percentage of the loan. As an example if a first mortgage is $100,000. and the second, subordinate mortgage is $50,000. you would use two of the first mortgage and one of the second mortgage.