How to Combine HELOC With Mortgage

Many borrowers look to refinance their total debt into one lower payment. To accomplish this, many borrowers refinance their mortgage debt through a cash out refinance. If adequate equity is in the home, a borrower should be able to refinance their debts and consolidate payments for easier budgeting and lower interest rates. Additionally, this can help the borrower to get out of debt faster, if they use discipline to apply extra payments to the new, lower monthly payment as well.

Instructions

1

Fill out an application with a mortgage lender. Provide the lender with two years tax returns and W-2 or 1099 forms. Also, provide the lender with two months pay stubs, two months bank statements, and a tax card on the property.

2

List all debts on the application that you would like to combine with the mortgage. Remember, you will be limited to a certain percentage of the home's value based upon the available programs and your credit score.

3

Order an appraisal through the lender to find out how much equity is available in your home to make the final decision on how much debt to include in the new mortgage.

4

Allow the lender to refinance the mortgage if the interest rate is at least one percent lower than your current rate or the monthly savings on the new mortgage will cover the expenses of the closing costs within two years or less.