Debt Consolidation & Refinance Mortgage
Debt Consolidation Mortgage Loans – The Easy Way To Save Money
Swimming in heavy credit card debt sometimes means getting deeper into debt simply because of high-interest rates. The IRS does not allow credit card interest as a deduction. If you use a home equity loan to consolidate and pay off your bills, you could actually save cash three ways: 1. No interest accrues on your credit card balances, 2. Your new loan could have a lower interest rate, lowering your monthly mortgage payment, and 3. At the end of the year, three IRS allows you to deduct most if not all of the interest from your mortgage.
If you have extremely good equity built up, you may want to consider cash-out refinancing. No matter what your home is worth, borrow only enough to pay off the existing mortgage and a specified amount you need to spend. For example, if your home is worth $300,000, but you only have $100,000 to pay-off. Borrow more than the existing mortgage, but less than the homes market value. You will then have lower payments and probably fewer restrictions for an early payoff.