My husband and I are looking into refinancing to consolidate our debts, it'll pay our credit cards, car payment etc...the lower monthly payment sounds great but I'm afraid it'll be more trouble than it's worth. Does anyone have any tips, suggestions, questions we should make sure we know before we say yes?
2006-10-25 10:42:19 · 7 answers · asked by mandy608 2 in Business & Finance ➔ Personal Finance
It can be very beneficial - if you stop collecting more debt! Be sure to use a reputible loan officer. There are laws out there to protect you. If you have enough equity in your house and your credit is good enough where you can get enough money out of your house to make it all make sense, you should do it. Make sure you're not paying the same amount of money that you're getting back because that would not make sense. Be clear if you want your mortgage company to pay the bills directly for you or if you would like to get the cash and pay them yourself. Also, I suggest that if you do this, you should get some extra cash out for a cushion if something happens.
2006-10-25 10:57:24 · answer #1 · answered by melspur82 1 · 0⤊ 0⤋
The answer to your question 'is it possible to lower the initial mortgage debt simply by remortgaging the appreciation of the house' is no. The way to lower the initial debt is to pay it off. However, a lower monthly payment may be achieved in 2 ways. a) IF interest rates today are lower than what you are paying, you can re-finance and lower your payment. b) IF you have a tidy amount of cash on hand you can pre-pay your mortgage and THEN re-fi to lower your monthly payment. Keep in mind, it costs money to borrow money so everytime you re-finance a mortgage you incur that expense of borrowing ( origination fees and closing costs), usually around 3% of whatever amount you are borrowing. AND regardless if you roll those costs into the new loan, they are STILL an expense.
2016-03-19 00:02:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Have you fixed the problem or are you just treating the symptom?
Refinancing and consolidating to a tax-deductible mortgage can be beneficial provided you stop racking up debt. Just be careful with how long you finance that debt for (the longer you take to pay it off...the more it will cost).
2006-10-25 10:54:30 · answer #3 · answered by derek 4 · 0⤊ 0⤋
Find out how much closing costs are so you know if its worth it or not. IF they are low, and you're not extending your mortgage by multiple years (If you're 5 years into a 30 year mortgage and refi, you could "start over" on the 30 years) than it can be a good move-- but ONLY if you DO NOT use those cards again.
2006-10-25 11:04:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
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2014-09-24 12:15:46 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I don't suggest refinancing your consumer debt into your home debt. If anything, get a home equity loan.
2006-10-25 10:48:45 · answer #6 · answered by Phoenix, Wise Guru 7 · 0⤊ 1⤋
I would seek credit couseling first.
2006-10-25 10:49:53 · answer #7 · answered by carasmom 3 · 0⤊ 0⤋