The first option is to refinance your first (and second) mortgage and get cash out to pay off debts or to use for any other purpose. This is advisable if either your first or second mortgage is higher than the current mortgage rates. And since a new first mortgage with cash out can go up to 95% of the value of your home, this is definitely an option worth discussing.

The second and most recommended approach to debt consolidation is through a second mortgage. These loans can be fixed or adjustable/revolving home equity loans and although both can go up to 100% of value, the fixed rate will usually be higher in rate and more costly. In addition, with our low cost revolving home equity line, you have the advantage of paying the line down (or off, with no pre-payment penalty), and later writing checks on the unused portion to cover unforeseen expenses and still benefit from the interest tax write-off.