When you think of getting cash out of your home, you probably think of a traditional Home Equity Line of Credit (HELOC) or a Home Equity Loan that you’d usually use to fund a major renovation, like a new roof or a bathroom remodel. What you might not think of is using the equity in your home to help you make progress toward paying down debt. Enter: the debt consolidation refinance.

What is a debt consolidation refinance?

Don’t just think “get money for a new roof.” Think: “Get my bills together under one roof.” What do we mean? If you’ve got equity in your home but still struggle under the burden of debt and high interest rates, you might be a good candidate to use the equity in your home to consolidate that debt. Moving your debt together under one roof — your mortgage — could potentially save you hundreds a month.

When is it a good idea to consolidate debt with your mortgage?

If you have tons of equity but are struggling to get by, debt consolidation refinance options might be worth a look. For many people, debt consolidation refinance can be a great way to put all your bills under one, low interest rate and use the equity in your home to knock out higher-interest debt for good. Making minimum payments on a large credit card balance is like moving a mountain of dirt with a toy shovel. Consider the benefits of a debt consolidation refinance:

• You could be paying off your credit card debt at a much lower interest rate.
• You may be able to raise your credit score more quickly.
• You may get a better rate on your new mortgage or a shorter term.
• Mortgage interest is potentially tax-deductible.*
• Moving revolving debt into an installment loan gives you a clear path to getting out of debt, freeing you from the minimum payment cycle.
• Most people find streamlining bills into one payment frees up significant time and minimizes financial stress.

With how hard you’ve worked for your home, let your equity in your home work for you. Wondering if a debt consolidation refinance is right for you? To find out more about a home loan through Grow, talk to us today!

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Subject to credit approval. ^*For specific tax advice, please consult a qualified tax professional.

Grow Financial mortgage loans are valid for the purchase or refinance of owner-occupied residential properties in the states of Florida, South Carolina, North Carolina, Georgia and Tennessee including single-family detached, condominiums and townhomes. Not valid for the purchase of investment properties. Grow Financial mortgage loan rates are updated daily and available at growfinancial.org.

 

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• Home Education