Having a large amount of debt is something that most Americans struggle with daily. Whether you have student loans, car loans, credit card debt or mortgage debt, your credit score is largely affected. The more debt you are in, the worse your interest rates will be.
Why Consolidate Your Debt?
Interest rates are still low, so consolidating your debt can help save you more money if what you are paying now is well over the current prices being offered by lenders. Talk with the best mortgage lender in Brooklyn at 888-210-0706 to compare your contractual interest rate to the current market rates.
You can consolidate your debt where you only have to make one payment per month. If you have multiple credit cards, it can be overwhelming trying to pay everything off at separate times. Therefore, consolidating your debt with your mortgage can make it where you only have one payment monthly.
In addition, if you decide to consolidate your debt using your mortgage, you can write off these payments from your taxes, since interest paid towards a mortgage is tax deductible. If you choose to not consolidate your credit card debt into a home loan, you will not be able to deduct your credit card interest payments from your taxes.
How To Consolidate Your Debt?
Refinancing your Brooklyn mortgage can consolidate your debt into a home loan. You can choose to do the “cash-out refinance” option, which is where you access the equity in your home to help pay off debt. The cash-out refinance option takes all your debt and puts it into one larger loan. This is beneficial because you only have to worry about making one payment per month.
You can also take out a home equity loan to help pay off your debt, however, this does not consolidate your debt into one loan. You would be gaining access to your home equity to pay off your other debt by obtaining a second mortgage.
Contact Us
For more information on how to consolidate your debt with your Brooklyn mortgage, please contact Yael Ishakis at 888-210-0706.
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