Like most of us, you probably have a car payment, some credit cards, retails cards, and maybe some personal loans. The month to month cost of all these debts combined can make it very difficult to get ahead, as all you end up doing is paying the interest or “minimum balances” of the loans.
Using the money in your home to consolidate all of your debt is a winning solution. Combining all of your debts and adding them onto your mortgage, also known as refinancing, has several advantages.
For one, the interest rate and amount of interest you pay is lower overall. Interest paid on credit cards can range from 10% to as high as 29% interest! This rate is compounded monthly as opposed to the semi-annual compounding period you get with a mortgage.
Perhaps the biggest advantage though is the monthly payment. By adding your debts to you mortgage, you can capitalize on a very low monthly payment. This can often give you the breathing room needed to put a plan in action and really start paying off your debt.
Here is an example of what refinancing can do to your monthly payments:
By consolidating your debts you can save thousands each year in interest alone. You will keep your credit rating in good shape by not missing any payments and eliminate late fees and penalties.
With interest rates still near an all time low, it just makes sense to consolidate all of your debt.
Quantity of assets and mediocre credit are of no concern to us, and they shouldn’t be to you either. Just sit back and relax and let your friendly neighbourhood Halton Mortgage Broker help you through the entire home-buying process. We will handle your rate negotiations and all the paperwork to leave you with as little to worry about as possible. So have no fear, you can become a homeowner in no time….
In such a large industry, homebuyers can experience complex issues when it comes to mortgage a home. Without access to mortgage industry resources and expertise, you might make bad decisions and put your financial future at risk. Hiring an experienced, professional Halton Mortgage Broker, eliminate the risks and help you to locate and secure the best mortgage solutions to match your needs.
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