Loan OptionsDebt consolidation refinances can be done using a variety of different mortgage loans.These can include everything from a 30 year fixed loan to an interest only loan to a minimum payment option loan.You need to figure out how much you are comfortable spending on your mortgage. This will vary from borrower to borrower.How To DecideIf you have a lot of equity in your property you may decide to have this work for you.Lower payment mortgages may make sense for you.An interest only mortgage gives you a lower monthly payment than a regular mortgage. This is because you are paying only the interest component of your loan. No principal is being paid off.Your loan size remains the same as long as you pay the interest only level.For a borrower with a lot of equity this may be fine. They will profit from any increase in their property value, and they have enough equity that a decrease in value will still leave them with some equity in their property.If you need a rock-bottom monthly payment than a minimum payment option mortgage may be for you. This loan offers the borrower the opportunity to make a minimum payment loan that is usually less than the interest only level.This gives the borrower a much smaller payment than a regular mortgage will. The monthly reduction in payment can often be over $1,000.This type of loan also has the potential for negative amortization. Any time you pay less than interest only the difference between your payment and the interest only amount is added onto your loan. For example, if the interest only level is $1,500 per month and the minimum payment is $1,000 per month, then if you choose to make a $1,000 minimum payment the $500 difference will be added onto your principal.For many borrowers this is acceptable in exchange for the lower payment. This is something that borrowers with equity may consider.