Refinance mortgage loan debt consolidating
You can quickly increase your credit score if that debt is rolled into your refinanced mortgage.This is a much lower interest rate debt, and mortgage debt is generally seen as ‘good’ debt by the credit bureaus, as long as you pay your mortgage on time.A few people may see little increase in their payment, if they are refinancing a much higher rate mortgage.Others will see higher payments each month, but you will be paying much less interest over time if you shorten your mortgage by 10 or 15 years.Getting a debt consolidation loan for bad credit can be challenging, but speaking with subprime and FHA mortgage companies is a great place to start.Debt consolidation loans and bad credit are often synonymous. #5 Save on College Loan Debt Credit card debt is not the only debt that many Americans have: Many also have thousands in college loans that they are paying on every year.#3 Write Off Mortgage Interest With few exceptions, you cannot write off credit card interest on your taxes.A massive advantage of mortgage interest is that you can deduct your interest payments each year from your income on your tax return.
Now is a good time to refinance to consolidate your debt, as you will probably pay a much lower interest rate than what you are paying on credit cards or student loans.For many Americans, the mortgage interest deduction saves them several thousands of dollars on their annual tax bill.If you refinance your home and pay off your debts with your home equity, you will be able to write off most of that interest.You should be aware that if the economy does heat up, interest rates will continue to rise.At that point, mortgage rates could be too high to make refinancing a good deal. Consider a Home Equity Loan to Refinance Credit Card Debt.