A slight adjustment in the interest rate or terms of repayment on your mortgage can drastically affect the overall cost of purchasing a home over time. For that reason, millions of homeowners are refinancing to avoid higher adjustable rates in favor of fixed-rate conventional loans. But mortgages can do much more than simply help buy homes. That's why it's a good idea to regularly review your mortgage and consider refinance options in relation to your overall financial picture. You may find a variety of ways that mortgage refinancing can save you money while offering increased convenience and simplicity.
Mortgage refinance vs. credit card debt
Mortgages are secured by real estate, so their corresponding interest rates are typically much lower than other kinds of consumer financing or credit card debt. Unlike other consumer loans, mortgage payments also offer solid tax deductions. Next time you need to fund a big expense, like the purchase of a car, a family vacation, or a wedding, consider using a cash-out mortgage refinance to foot the bill. Another compelling benefit of moving debt into a mortgage refinance package is that you can spread your payback period out over a longer period of time. This takes pressure off your monthly income by putting your home equity to work to leverage your borrowing power.
One bill only
One of the prime considerations when looking for ways to reduce your debt is the burden of costs that are directly or indirectly related to servicing that debt. Banks and credit card companies, for example, are becoming increasingly aggressive about adding miscellaneous fees and service charges to customer accounts, while simultaneously cutting back on the quality of their customer service. All of these factors contribute to the overall cost of consumer debt. If you're looking for ways to improve your financial picture, be sure to look at the whole picture, not just a snapshot or thumbnail sketch of your outstanding balances and current rates.
If your bank or mortgage company provides good customer service, you can transfer all your other consumer debts to them through a cash-out mortgage refinance and end up with a single account to manage. Your time is valuable, and wasting it while dealing with unresponsive customer service departments costs you money and peace of mind.
Even if you're unhappy with how your current mortgage company treats you-if their phone is always busy when you call, for instance, or if they fail to adequately answer your questions-you can do something about that, too. Just refinance your mortgage with a lender who really deserves your business. You'll save money and consolidate your finances, all in one easy step.
http://www.mortgageloan.com/help-manage-debt-with-a-mortgage-refinance
