Is consolidating debt into your mortgage a good idea
With a home equity loan, you borrow against that ,000 and pay it back in monthly installments.
That’s why it is often referred to as a second mortgage.
Credit cards in particular come with some of the highest interest rates in the financial industry.
Getting rid of that expensive debt is a nice idea in theory, but finding the finances to do so can be difficult.
If you have a load of unsecured debt, such as high credit card balances, your top priority should be to reduce it as much as possible, as soon as you can.
The longer you have the debt, the more unnecessary interest you pay.
If you have equity in your property, you can use it as collateral to secure another fixed-rate loan and pay off other debts.
For instance, if your home’s appraised value is 0,000 and you owe 0,000 on the mortgage, you have ,000 in equity.
With mortgage interest rates at an all-time low, one option to help free up cash is to refinance your existing mortgage at a lower rate, reducing your monthly obligations.