Do you have equity in your home? If so, a mortgage refinance is a great way to get cash to consolidate debt and save money on interest. Let us at Residential Home Mortgage show you the best way to get your finances on track with a debt consolidation mortgage refinance. We have closed thousands of loans for homebuyers, which in turned assisted them to build a better financial future.
The Benefits of Debt Consolidation with A Mortgage Refinance
RHMC has helped many homeowners through the process of debt consolidation with a mortgage refinance. Since this program offers many key advantages to homeowners, our expert team has identified three key benefits to this refinance program:
Lower interest rates – Credit cards usually have interest rates of between 15-25%, and personal loans usually have rates exceeding 10%. In contrast, mortgages usually have rates of between 3-5%, depending on your creditworthiness. That means you’ll save a lot of money on interest if you choose to consolidate your bills with a mortgage refinance.
Pay a single bill each month – You won’t have to worry about juggling multiple bills and monthly minimum payments. You’ll pay one single bill each month – your mortgage payment – which makes managing your household finances much simpler, and financially friendly.
Save on taxes – Interest paid on consumer debt (credit cards, personal loans, auto loans) is not tax-deductible. However, mortgage interest is usually deductible on your taxes. This means that choosing to consolidate your debts with a mortgage refinance can actually save you money on your tax bill!
What Is Debt Consolidation Refinancing?
Debt consolidation refinancing is a type of cash-out refinancing, which means you are borrowing against the value of your home by taking out a new mortgage for a higher amount. At closing, you will receive the difference in cash. Interest rates and terms vary by qualifications, but overall, this is a great solution to help many homeowners with debt consolidation.
For example, your home is worth $250,000, and you have a remaining mortgage balance of $150,000, as well as $30,000 of debt. With debt consolidation refinancing, you can refinance with a new mortgage of $180,000 and pay off your current mortgage and your debt, leaving you with one lower monthly payment.
Ready to Mortgage Smartly™?
At RHMC, we always have your best interests in mind. If debt consolidation refinancing is the best option for you, let our team of experts guide you through the process. We’ll take the guesswork out and provide you with great rates and top-notch service.
Fill out a low rate quote request today to discuss cash-out refinancing with one of our RHMC loan specialists.
Great Rates. Great Service. Mortgage Smartly™.