A growing number of homeowners across the country are wiping out their high interest revolving debt by refinancing and tapping the equity in their own homes.

Debt Consolidation refinance is a great way to lower your overall monthly payments by wrapping that debt into your mortgage. In some cases the savings can be in the hundreds or thousands of dollars on a monthly basis.

A common objection to consolidating debt is that one is extending the term of their debt. This is a misconception as credit card debts can take as long as 22 years to payoff if paying the minimum balance, at higher rates, often with annual fees, and no tax deductibilty.

It's not too late to use the equity in your home to consolidate all of your outstanding debt into one lower monthly payment.

With the increase of property values these last few years, a debt consolidation refiance is available to almost every homeowner as a way to eliminate revolving credit and stabilize their finances.

There are several options to consolidate debt on a a debt consolidation refinance. The most popular option is to refinance your mortgage receive cash at closing. However, this option is only available to you if you have significant equity in your home.

A tremendous advantage to using a home loan to consolidate consumer debts is that, unlike consumer debt interests, the interests paid on a mortgage is potential tax deductible. There are income limitation to such deduction. Therefore, always consult a tax accountant before taking deductions on paid mortgage interests.

Many people that are refinancing and doing debt consolidation refinances are refinancing into a combo loan. A combo loan will help you to avoid PMI, private mortgage insurance, if your LTV, loan to value, is over 80%. Also, a combo loan may help reduce the rate bumps for using the equity in your home to pay off debts if your LTV goes over 80% as well. Consult a mortgage professional immediately to find out what type of loan will be best for you.

Depending on the amount of debt you have refinancing may be the only manageable way to get back on track financially. There zero percent offers from credit card companies that look great on paper but many are only for a short term and then the interest rates go right back up into the high teens.