Mortgage refinancing is, without a doubt, one of the best ways to borrow money because of the lower interest rates offered on mortgages. If you would like to explore your options and determine whether or not a refinance makes sense for you, give me a call. I am always happy to discuss your options and may be able to suggest some additional cost-saving strategies.

DEBT CONSOLIDATION

Like most of us, you probably have a car payment, some credit cards, and maybe some personal loans. The month to month cost of all these debts combined can make it very difficult to get ahead, as all you end up doing is paying the interest or “minimum balances” of the loans.

Using the money in your home to consolidate all of your debt is a winning solution. Combining your debts and adding them onto your mortgage, also known as refinancing, has several advantages.

For one, the interest rate and amount of interest you pay, is overall lower. Interest paid on credit cards can range from 10% to as high as 29% interest! This rate is compounded monthly as opposed to the semi-annual compounding period you get with a mortgage.

Perhaps the biggest advantage though is the monthly payment. By adding your debts to you mortgage, you can capitalize on a very low monthly payment. This can often give you the breathing room needed to put a plan in action and really start paying off your debt and starting a savings plan.

By consolidating your debts you can save thousands each year in interest alone. You will keep your credit rating in good shape by not missing any payments and eliminate late fees and penalties.

With interest rates still near an all time low, it just makes sense to consolidate all of your debt.