Mortgage Refinancing Tips for 2023
The holidays are a season of giving and often times, households can often find themselves carrying some extra debt as we enter the New Year.
The holiday season can often lead to an accumulation of debt, whether it be from credit cards or other loans. If you're looking for a way to simplify your payments and reduce them, consolidating your debt into your mortgage may be the answer.
If you happen to be someone currently struggling with some post-holiday debt, that’s okay! Whether you’ve accumulated multiple points of debt from credit cards or are dealing with other loans (such as car loans, personal loans, etc.), you are likely looking for a way to simplify your payments – and reduce them.
There are several benefits to consolidating other forms of debt into your mortgage, including the ability to pay off your loans over a longer period of time, reduced interest rates compared to credit cards, and only having to track and make one payment per month. This can also significantly reduce your total monthly debt repayment amount.
For example, if you have $30,000 of credit card debt, you may be paying around $600 per month, with $500 going towards interest. By consolidating this debt into your home equity and mortgage, your payment for the $30,000 could decrease to around $175 per month, with interest charges closer to $140 per month.
It's important to note that consolidating debt through refinancing will increase your mortgage, but the benefits of interest savings, reduced time and stress may make it worth it. Keep in mind that you'll need a minimum of 20% equity in your home to qualify for this option.
If you're interested in simplifying your debt or exploring alternative options, reach out to me and we can provide you with a free debt analysis to see if it will make financial sense to proceed with a mortgage refinance. I can help you understand the process of consolidating your debt into your mortgage or suggest other strategies that may suit your needs.
All the Best in in 2023