Monday, February 23, 2015

Use The Low Interest On Your Home Line Of Credit For Other Debts

   

What entices people to buy something expensive that they don’t necessarily have the cash up-front to pay for like a car?  Low to 0% financing, right?  Right!  While mortgage rates aren’t at zero, they certainly are at the lowest they’ve been for years, including the lowest MIPs available as well.  This is something you can take advantage of in more ways than one.

     If you have equity in your home, getting a cash-out finance at such a low rate could be helpful to ease your other, higher interest-rate debts such as credit card debt, or student loan debt.  Remember mortgage interest is tax deductible, the debt rates are not. 
  
     The key to making this work for you is to have a higher rate debt you need to pay off already in mind, offsetting the actual cost of interest.  With this method, you could not only save more money, but potentially give you credit a boost as well.  Not all mortgages are the same, so please consult a mortgage professional.

1 comment:

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