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A home is often an individual or family’s largest asset. Because of this – and because mortgage interest rates are often lower than rates on items like credit cards – paying off debt is a big reason why people refinance their mortgages.
A debt consolidation loan is a new loan with a balance that’s larger than that of your existing mortgage. You use the cash difference to pay off other debts – typically those with higher interest rates, such as credit card balances.
First, take a look at the outstanding debts you want to pay off: credit card payments, car loans or student loans, for example. Consider their current balances, minimum payments and interest rates. Then compare a mortgage refinance against other options for debt consolidation, such as a personal loan. Throughout the process, it’s important to remember that debt consolidation doesn’t lower your overall amount of debt; it simply rolls all loan balances up into a single loan. You should also consider that the debts that you may be consolidating/paying off are typically not secured by your home. If you consolidate those debts with a debt consolidation mortgage loan and you fail to meet the repayment terms of your new mortgage, you could lose your home.
Here is a list of ten things you should know before refinancing.READ ARTICLE
Before you make any decisions, know what’s involved with each option and the differences between them.READ ARTICLE
We can help walk you through the process when you’re ready to take the big step and buy or refinance.GET STARTED ONLINE