When you use the equity in your home to consolidate other high interest debts (credit cards, Home Equity Loans, and car loans for example), you can work towards multiple financial goals at the same time. You may be securing this debt at a very low interest rate compared to what you are currently paying (the average interest rate on a credit card is 13.00% APR for fixed rate credit cards and 16.00% APR for variable rate cards!). You may free up extra cash each month that can be saved, invested or used to make additional payments towards your mortgage. Do you have a cushion built into your budget every month? By consolidating your debt, you can accomplish just that!
One recent example is a refinance of a couple approaching retirement that had $50,000 and 7 years remaining on their first mortgage, $24,000 on a Home Equity loan, and $15,000 in credit card debt. After consulting with me, this couple decided to refinance to a 10 year fixed rate mortgage; and by applying the extra cash each month towards their monthly mortgage payments, they will have all these debts paid off in the next 6 years! Now that is the power of using the equity in your home to get ahead!
If this couple’s situation sounds familiar, or you are interested in what I can do for you, please contact me at [email protected]or directly via phone at 715-358-6939. You can also see a full list of Mortgage Lenders in your community by clicking here.