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Refinance your way out of debt
By Danny Doane
Sometimes it makes good financial sense to use the equity in your home to consolidate debt. Depending on your financial goals, it may be just the thing to do if you want to:
Refinance to Pay Off Credit Cards And Other Debt
The difference between credit card debt and a mortgage can, financially speaking, mean thousands of dollars. Why? Credit card debt is compounded where the interest on a mortgage is simple, and often tax deductible. Using the equity in your home rather than credit cards to finance expensive purchases can save you money paid in interest in the long run.
Refinance to Lower your rate, lower your monthly payment
If interest rates are lower than the rate you currently have on your loan, this could be the perfect opportunity to eliminate the higher rate.
Refinance Home Improvements If you choose cash-out refinance, you can use the money you receive to fund renovation and remodeling projects to add value to your home.
Refinance to Access Cash
Think of the equity in your home as a savings account that you could access through cash-out refinance. You may want to finance an important home improvement that will increase the value of your home, pay for college or pay off high interest credit card debt. Whatever your reason, this may be the right option for you.
Refinance can make your debt tax deductible
* Be sure to consult your tax advisor.
About the Author
Danny Doane
Teach Mortgage Origination at Cal State Fullerton Extension.
Senior Loan Officer Since 1980
Article Source: http://www.simplysearch4it.com/article/1527.html
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