Why would I refinance my mortgage to consolidate debt?
Interest rates on home loans are very low right now, and by transferring your debt from, say, your high-interest credit card to your mortgage, you can potentially save lots of money.
How do I do that?
It’s actually pretty simple. You tap into the equity you’ve built in your home and use it to pay off all your credit card or other high interest debt. Now, all that debt is tied up in your mortgage, where you can pay it off at much lower interest levels. As a bonus, you’re left with just one payment to make.
A cash-out refinance is one option for making this strategy work. Usually when you refinance, you retain the equity you’ve built up. But with a cash-out refinance, you take some of that equity out, trading it for liquid cash.
Home Equity Loan is another good option, especially if you don't need to refinance. It allows you to take out equity and pay it off over a fixed term, almost like a second mortgage.
Why choose Total Mortgage?
After 17 years of success, it’s safe to say that we know what we’re doing. Plus:
- We have some of the lowest interest rates in the country, and we might be able to cut your mortgage payments considerably.
- No pre-payment penalties, ever. Go on, pay off all your debt as fast as you can. We promise not to get grumpy about it.
- No pushy loan officers, just experienced professionals who will educate you as they help you get the financing that makes sense for you.
- We aim to close most of our refinances in thirty days or less—and you’d be surprised how often we succeed.