Is your home worth more than you’re currently paying for it? You can pull that extra value from your home to pay other debts with a debt consolidation mortgage. This can help you lower interest rates and improve your overall financial health.
Credit cards have notoriously high interest rates—some even exceed 20%! If you have a lot of debt on these cards the interest can make them incredibly hard to pay off. Home interest rates can get below 4%, so when you refinance you’re effectively lowering your interest rates by 10 percentage points or more.
Use the money from a debt-consolidation refinance to pay off credit cards or student loans, consolidate all monthly payments into one recurring fee, or even pay off your mortgage early. Whatever your situation, you can get relief.
Cash-out refinances are the most popular option for debt consolidation. This type of refinance usually provides the lowest rates and longest payment terms, which results in low monthly payments.
The second option you have for debt consolidation is a home equity loan. This type of loan is backed by your house, but is separate from your primary mortgage.
Typically Home Equity loans can be the right choice if you want to keep everything separate in your finances or if you have current home mortgage terms you don’t want to touch.
Pre-Qualifications are an important step in today's real estate market. They show sellers that you are qualified to buy their home and that your offer should be considered above other, less serious offers.