Consolidating credit card debt into mortgage
You may also have a long list of home repairs that need to be addressed.
Cashing out on a refinance could provide you find the money you need to get the job done.
But sometimes the distinction between “good” and “bad” debt isn’t so clear-cut.
In fact, because of this generalization, some people make the decision to refinance their home mortgage in order to free up money to pay off credit cards.
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This not only simplifies the payments, but can also provide real debt relief by reducing those payments as well.
A consolidation loan can reduce your monthly debt payments in two ways.
For example, if your house is worth 0,000 but you only owe 0,000 on your mortgage, you could potentially remove some of the equity in order to pay off debt with a higher interest rate attached to it than what you pay on your mortgage.First, you may be able to get a lower interest rate on your consolidation loan than you were paying on your various other debts.With interest rates on credit cards often ranging from 12-18 percent, that can produce a real savings.According to the Consumer Financial Protection Bureau, mortgage lending between August and October 2016 was up nearly 50 percent over last year, “unusually large number likely due to a high rate of mortgage refinancing.” There are many reasons you might consider refinancing your mortgage.For one, interest rates are continuing to creep up after several years of historic lows, driving many borrowers to refinance in hopes of locking in a lower rate now.