Debt consolidation calculator
- should i refinance to consolidate debt
- should i refinance my mortgage to consolidate debt
- can i refinance my home to consolidate debt
- can you refinance to consolidate debt
Debt consolidation refinance calculator.
Refinancing Mortgage for Debt Consolidation
Debt consolidation through a refinanced mortgage is an attractive and beneficial way to pay off loans and eliminate high-interest debt.
The prime factor for qualifying for debt consolidation refinancing is based on the equity in your home – which is the appraised value of your home less what you owe on the mortgage.
A debt consolidation loan allows the borrower to use a single, lower-interest loan acquired through refinancing to pay unsecured debt like credit cards, student loans and medical bills as well as the mortgage.
Debt refinancing example
With interest rates so low in early 2021, the new loan could keep the monthly payment on that unsecured debt close to the same, or even lower than what a consumer was paying. An added benefit: Unlike credit card interest, the interest on a refinanced loan is tax deductible.
Can You Refinance to Pay Off Debt?
If you have sufficient equity in your home, refinancing an existing mortgage to pay off debts is considered a solid financial strategy.
Refinancing simply means taking out a new mortgage on your home. The new
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