Refinance Mortgage

Question: How can a refinance mortgage loan help my finances?

(Posted by: Joshua E on 2008-01-08 00:41:04)

Posted by: Abigail D on 2008-01-08, 00:47:41

If you just want extra cash to spend on trivial things, it won't help you. But if youre getting a refinance mortgage loan to pay off credit card and other debts, you're definitely taking your finances by the reins. Source: whataboutloans.com/ mortgage/ mortgage-refinance-loans.html

Posted by: mcmaddysmum on 2008-01-08, 00:53:49

The interest rate on a mortgage loan is much lower than that on a credit card/ personal loan. so if this is the reason you are refinancing - to consolidate debts then you may be going down the right track. You will only have one payment instead of several and a lower payment than all others combined. THERE ARE SOME TRAPS TO BEWARE OF THOUGH. 1. Don't refinance other loans / credit cards unless you are capable of not taking out more - blowing credit card limit out again. As you end up in a worse position - a higher mortagage and back to the excess debts as well. 2. be careful how much equity you are leaving in your home - the value of your home today may be inflated for some reason and you don't want to get down the track and be wanting to sell and find that the mortgage is more than the value of the property. 3. Think about how rising interest rates will affect your ability to make the repayments you are looking at - at the current interest rate you can afford them - but if interest rates were to go up say 5% - what does that mean for you. Hope that helped.....