At the borrower level, people still clamor for high-LTVs. As a partner with the Columbia, Md.-based research firm Wholesale Access , she studies the residential lending industry. These banks, or whoever they may be, mortgage companies, etcetera, don't want consumers to hear that they are doing this product and get swamped with calls because they're not prepared to do huge volume right now. The lenders who are offering them say life is more convenient for borrowers who consolidate debt with one creditor rather than a half-dozen. They also suggest the single payment will be smaller than the others combined.
Experts say both claims can be true.
But the ultimate cost of a person's debt usually ends up being greater with the high-LTV loan. But experts say many borrowers run up their card balance again anyway, leaving them worse off. Fees that accompany these loans can add to the borrowing price tag as well. Like regular mortgages, high-LTV loans feature closing costs to cover things such as appraisals. Tax deduction limited While many advertisements suggest that interest will be tax-deductible, the truth is a little more complex.