Consolidating debt with a new mortgage fonspeeddating com
If the current value of your home is greater than your current mortgage balance, it means you have equity in your home.
You may be able to use this equity to refinance your current mortgage and receive cash at a low interest rate to pay off your credit card debt.
For homeowners, one of them is to consolidate your debt and lower your monthly bills by refinancing your mortgage.
You’ve probably noticed how low mortgage rates have been during the past few years.
households carry an average of ,762 in credit card debt, and in 2015, they paid an average interest rate of 13.66% on it.
It might seem as though there’s no relief from high-interest balances, but you can take steps to lower your burden.
This is because credit card debt is perceived as riskier than mortgage debt, and credit card companies charge interest accordingly.
The average credit card interest rate is around 15%.
By comparison, mortgage rates are currently in the 3–4% range.
2017 Servicing based on 7,374 total responses and measures the opinions of homeowners on their mortgage servicing company, surveyed in March – April 2017.
You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. IN THIS ARTICLE: Using low mortgage rates to consolidate debt Doing a cash-out refinance the right way Potential downsides of a cash-out refinance Next steps to refinance your mortgage Debt is a major problem for many American households — especially those that have credit card debt in addition to mortgages, auto loans and student loans. Many cardholders pay higher rates on higher balances.
Quicken Loans received the highest numerical score in the proprietary J. Power 2010 – 2016 Primary Mortgage Origination studies and the 2014 – 2017 Primary Mortgage Servicer studies.