You would then have two mortgages: your first mortgage and a second mortgage which could be your debt consolidation loan.There is a lot more to this process than we've mentioned here.
Many times you can get the same interest rate on your second mortgage as you got on your first mortgage, but this isn't always possible (talk to your bank to find out more).
They peaked at over 20% in the early eighties but are now typically offered in the 2% - 5% range.
It is wise to remain mindful of the fact that these are historically low interest rates.
How to Get Good Debt Consolidation Advice for Free A debt consolidation loan is where a bank, credit union or finance company provides you with the money to pay off your outstanding debts and "consolidate" them (bring them all together) into one big loan.
This usually provides you with three advantages: Banks and credit unions usually offer the best interest rates for debt consolidation loans.