Credit Card Delinquency is the highest it has been since 1992. Getting ahead of the situation before you fall behind is important to protect your credit and your ability to obtain credit and financing in the future.
If you want more details on how this could affect your monthly cash flow. Contact me for more information. I am happy to do a free refinance analysis for you.
Leveraging home equity to pay off higher-interest debt can be a savvy move, especially when mortgage rates are lower than those on revolving debt or home equity lines of credit. It can lead to significant savings on interest payments and help individuals manage their finances more efficiently.
Reasons to consider a Cash Out Refi:
Interest Savings: Highlight the potential for substantial savings on interest payments by consolidating higher-interest debts into a lower-interest mortgage.
Financial Efficiency: This can improve your overall financial situation more efficient by streamlining debt payments and reducing the overall cost of borrowing.
Long-Term Benefits: Reducing debt can have a positive impact on your financial stability and credit score.
Fixed vs. Variable Rates: Your monthly mortgage payment will not change as it is fixed. Where the monthly minimum on your revolving debt is variable and changes often. This can provide stability in monthly payments.
Even though this strategy can be beneficial for many it's not one-size-fits-all, and individual circumstances should be carefully considered. Make sure you are talking with lending professional that is educating you on all your options and not just trying to sell you a loan.