By Ben Ehinger
Have you been thinking about refinancing your mortgage to consolidate some of your debts? A refinancing, debt consolidation mortgage, has become a very popular way to bundle all of a person’s payments and debts into one easy payment each month. This type of a loan has some great benefits
The top 3 benefits of refinancing your mortgage to consolidate your debts
Benefit #1 – You will only have one payment each month
It is generally easier for most people to make one payment each month instead of 5-8 different payments. It is easier to remember one due date and deal with one statement in the mail each month. When you refinance your mortgage to payoff other debts such as credit cards, auto loans, personal loan, old collection accounts, or any other debts, you are creating a system to only make one payment a month on all of these bills.
Benefit #2 – You can usually save thousands of dollars by refinancing
When you refinance your mortgage you will generally have a lower rate than the average credit card and personal loan. This will allow you to save money since; when you consolidate your debts into your mortgage you end up paying these debts at a lower interest rate. This can literally save you thousands of dollars on the back end of these debts.
Benefit #3 – You will no longer have these debts on your credit report
Refinancing to consolidate debts will completely eliminate the debts that you roll into your mortgage. This can drastically reduce your monthly payment and in the process clean up your credit report. Once you clean up your credit report by consolidating your debts your credit score will raise. Then, you can get a lower rate on new credit cards, loans, and even on your next refinance.
Now that you know the top 3 benefits to refinancing your home to consolidate your high interest debts, you have only one choice to make. Which lender has the right program for you? I recommend doing an online comparison quote to see what is out there, and don’t forget to shop around.
Get your online comparison quote right how by following the link below:
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