Weighing your debt basically consists of figuring out what the average rate is you are paying.  This works great if you have a primary mortgage plus a HELOC (Home Equity Line of Credit) or a secondary mortgage. 

The first step is to add up your debt.  For example, you have a $200,000 primary mortgage at 5.875% and a HELOC with a balance of $100,000 with a rate of 7.25%.  Your total debt is $300,000.

The next step is to divide your primary mortgage of $200,000 by your total debt of $300,000.  This will produce .67, which you will then multiply by your primary mortgage rate of 5.875% which equals 3.94%.

The third step is to do the same process with your HELOC.  Divide $100,000 by $300,000 which will produce .33.  Multiply .33 by 7.25 and you get 2.39%.

Now, you will add  2.39 plus 3.94 and you get 6.33.  So, you are paying an average of 6.33% on both mortgages.

With the rise in interest rates, foreclosures are estimated to reach some 500,000 this year.  Money might be somewhat time, so now’s the time to act not later.  Avoid becoming a statistic.  Take what action you can to avoid the F word.  If you’re struggling to pay your mortgage, call your lender and ask for suggestions how you can preserve your home and still satisfy your obligations.  Take a good look at your bills; if there’s anything you can trim back, do so.  Honestly assess your outflow versus your income and decide if you may need to sell and downsize.  The trick here is to act early before the deluge of phone calls asking for payments strikes, or worse, foreclosure on your loan.  With a touch of preventative action, it can be avoided.