Is consolidating debt into your mortgage a good idea

Consumers may also do a “cash-out” refinance, in which they take advantage of rising home values to borrow against their equity.Nerd Wallet asked several financial advisors from its Ask an Advisor network about key factors homeowners should keep in mind if considering these strategies.Pros: Another popular strategy is to take out a new, larger mortgage that pays off the old one and leaves you with cash at closing to pay off your other bills.This option, known as a cash-out refinance, requires that you have sufficient equity in the property.Refinancing your house to consolidate your debt by paying off your credit card and other bills might sound appealing, but beware of the risks.You might trade several payments at high interest rates for one payment at lower interest, but that might not be your best choice.If you have a load of unsecured debt, such as high credit card balances, your top priority should be to reduce it as much as possible, as soon as you can.The longer you have the debt, the more unnecessary interest you pay.

So should you consolidate student loans into a mortgage?Adding ,000 on a 20-year mortgage means you'll pay interest on that amount for 20 years.Chances are you can pay your credit cards off sooner than that, even though they probably carry a higher interest rate than your mortgage.Credit cards in particular come with some of the highest interest rates in the financial industry.Getting rid of that expensive debt is a nice idea in theory, but finding the finances to do so can be difficult.

Is consolidating debt into your mortgage a good idea