Thinking of consolidating your debt with a mortgage refinance? Here are a few things to keep in mind as you weigh your options:
Refinancing could allow you to pay off high-interest credit card debt, private loans, auto loans, or other high-interest debt. With a home loan refinance, interest rates are typically lower, and it would make more financial sense to make payments on a mortgage refinance rather than higher interest loans.
It should be noted that there is a big difference between using money from cash-out refinancing to pay for home renovations or debt consolidation, which are more of an investment in your home and can potentially increase the value, versus using the funds to buy a new car which has no return on your money.
A Cash-Out refinance could help you:
Access a large lump sum of cash
Pay off high interest credit card debt
Pay off a car loan
Pay student loans
Pay off medical bills
Finance a wedding
Take a vacation
Make home improvements
Pay for elderly care
Buy an investment property
Pay for college
Pay down debt and improve your debt-to-income ratio
Boost your credit score
Get a lower interest rate
Improve your financial situation
Get potential tax deductions (be sure to consult a tax professional)
Have simple interest instead of compound credit card interest
Refinancing could allow you to pay off high-interest credit card debt, private loans, auto loans, or other high-interest debt. With a home loan refinance, interest rates are typically lower, and it would make more financial sense to make payments on a mortgage refinance rather than higher interest loans.
It should be noted that there is a big difference between using money from cash-out refinancing to pay for home renovations or debt consolidation, which are more of an investment in your home and can potentially increase the value, versus using the funds to buy a new car which has no return on your money.
A Cash-Out refinance could help you:
Access a large lump sum of cash
Pay off high interest credit card debt
Pay off a car loan
Pay student loans
Pay off medical bills
Finance a wedding
Take a vacation
Make home improvements
Pay for elderly care
Buy an investment property
Pay for college
Pay down debt and improve your debt-to-income ratio
Boost your credit score
Get a lower interest rate
Improve your financial situation
Get potential tax deductions (be sure to consult a tax professional)
Have simple interest instead of compound credit card interest
I'm here to run scenarios, answer your questions, or start the process if you're ready.
Lisa Baniahmad
Broker/Mortgage Loan Consultant
Call Direct: 818-359-4145
Email: Lisa@trustlendingsolutions.com
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