Happy Thursday – I hope you are doing well. For this week’s video, I want to talk about using the equity in your home to pay off other debt. This update took me longer than most because this is an uncomfortable subject for most. Many people have low interest rates so considering a refinance right now seems crazy. But, while their rate is low, they may also have more consumer debt than ever, and the monthly payments may be getting out of control.
This is uncomfortable for me because I have been there before. For my first home, I had to refinance and take a higher rate to pay off debt and at first, the thought of it made me feel horrible. However, once I ran the numbers and realized I could save over $800 a month, it made sense, and I moved forward. Luckily, I did not acquire any new debt after that and was able to refinance again down the road and lower my interest rate.
If you are in a scenario where your monthly bills are getting out of hand, but you know you have equity in your home, please give me a call and let’s run numbers and see if a cash out refinance makes sense for you.
Cornerstone Mortgage Group
Georgia Residential Mortgage Licensee: 21412 • Company NMLS: 147913 • Individual NMLS: 147938