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Should I refinance to get out of debt?

The reality is, with today’s low interest rates, if you own a home you could be spending way more than you should be on your mortgage. So if you have other types of debt like credit cards or other loans that you are paying a higher interest rate on, you could use the savings to pay it off. In many cases you could even lower your mortgage payment AND pay off other high-interest debt.

Another lesser-known bonus that most people don’t think about, is that mortgage interest is tax-deductible. So you can cut down on your tax bill too!

Here’s an example: If you can save just 1% on an existing mortgage of $200 thousand, you could put over $100 per month towards your other debts without raising your mortgage payment a dime! Plus you’ll save another $40,000 or more over the term of the mortgage. That’s huge!

In many cases, if you want to get your debt under control, your home sweet home could be just what the doctor ordered. Naturally, every situation is different. Give us a call and let’s talk through options to see if this could work for you!

Information provided on this website is for informational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. American Mortgage Brokers does not guarantee the quality, accuracy, completeness or timelines of the information. While efforts are made to verify it, the information should not be assumed to be error free. Some information on the website may have been provided by outside sources and has not necessarily been verified by American Mortgage Brokers. American Mortgage Brokers does not assume any liability for the information contained herein.

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