Refinance Your Home Mortgage to Pay off Debt
Consolidate Your Debt with a Low Interest Rate Mortgage
Are your monthly expenses becoming too much – leaving you with barely any money to live off of? How much of that is paying back debt in the form of car loans, personal loans, or credit card debt? Did you know that you can refinance your home to pay off this debt?
With mortgage interest rates at an almost record low, you can save a lot in interest payments by rolling your other debt into your mortgage. This is especially true if you have credit card debt since you could be paying interest rates of 18% or higher. Worried about the penalty for closing your existing mortgage early? In some cases it can still pay off! Take a look at this example where a home owner with a mortgage, car loan, and credit card consolidated their combined debt of $225,000 into a new $233,000 mortgage (which included the penalty for closing their mortgage early):
Total Debt Current New
Mortgage $175,000 $ 969 $1,163
Car Loan $ 25,000 $ 495 $ 0
Credit Card $ 25,000 $ 655 $ 0
Total $2,119 $1,163
The home owner’s monthly payments almost halved – improving their quality of life and stress considerably! With many mortgages offering the ability to make extra payments (doubling up monthly payments or making a bulk payment), any extra money saved due to the new lower monthly payments can be used to reduce the mortgage principal directly.
Call us to book an appointment to see if refinancing your mortgage to pay off debt will work for you! We serve Courtenay, Comox, Cumberland, and the surrounding area!