Refinance — Consolidate Your Debt
Are you feeling financially squeezed with the amount of bills coming your way each month? Refinancing your home loan is a great way to get the money you need to consolidate all those bills and get rid of their high interest charges. These mortgages are sometimes called “cash-out” refinancings, because you are getting cash out of your home’s equity to use for other things.
By consolidating your debt into a refinanced mortgage, you can save time and money.
Why Should I Refinance My Home Loan To Consolidate My Debt?
Consolidating your debt by refinancing is simply moving all your debt into one place: your mortgage. Doing this gets rid of differing due dates and various companies you owe to, putting all your loans and debt into one, easy to remember payment.
In addition, your new mortgage interest rate is typically lower than the interest rates on your credit card accounts. By getting rid of the high interest rates on your current credit card debts, and combining all your bill payments into one, you’ll end up paying less each month than with all the bills separately.
What To Consider When Consolidating Your Debt
It’s important to keep in mind that your debt isn’t gone; it’s just in a new place. You need to remain disciplined in your spending and not overspend on your now “debt-free” credit cards.
Also, make sure you’ll be able to afford the new payments on your new mortgage. To see how much you can afford, check out our mortgage calculator.
Underwriting standards have become more stringent over the past few years on cash-out refinancings. Talk to one of our home loan experts or call us at 1-866-934-7283 to see if this form of home loan refinancing is right for you.
Why Choose Guaranteed Rate For Your Refinance
Guaranteed Rate is in the business of saving our customers money on their home loans. With low rates and personalized loan options, you’ll be sure to get the mortgage and low rate you need to meet all of your home financing goals.
We offer tools to make your home refinancing easy. See our various mortgage calculators, including the Am I Better Off Refinancing calculator, as well as our free, downloadable e-book, “Time to Refinance Your Mortgage? The Five Most Important Questions to Answer.”