You may be able to pay off higher-interest debts by refinancing to a competitive rate. Even with less-than-perfect credit, we may be able to lower your monthly payments and provide you with a plan!
Advantages of cash-out refinancing
- 30-, 20- & Refinance mortgage rates tend to be lower than the interest rates on other types of debt, so it’s a very cost-effective way to borrow money. If you use the cash to pay off other debts such as credit cards or a home equity loan, you’ll be lowering the interest rate you pay on that debt.
- Mortgage debt can also be repaid over a considerably longer period than other types of debt, up to 30 years, so it can make your payments more manageable if you have a large amount of debt that must be repaid in 5-10 years.
More advantages of cash-out refinancing
- If market rates have dropped since you took out your mortgage, a cash-out refinance can let you borrow money and reduce your mortgage rate at the same time.
- Mortgage interest is generally tax-deductible, so by rolling other debt into your mortgage you can deduct the interest paid on it up to certain limits, assuming