Cash out Refinance for Debt Consolidation
A mortgage refinance can have a very powerful effect on people. Since the mortgage is generally the largest debt item for a family, there are many advantages to periodic review of options as the family picture changes.
I prefer to look at the mortgage as just one part of an overall debt picture, and further still one part of an overall family finance picture. As the debts change over time, sometimes getting a new mortgage to pay off other debts can create huge advantages.
Cash out refinance for debt consolidation can create improved cash flow. Meaning, the refinance can lower the total monthly obligation immediately upon its closing. This extra cash can then be used to accelerate the payoff of other debts, or the new mortgage, or be used to fund retirement or savings vehicles.
Sometimes cash out refinance may NOT improve the monthly cash flow, but could possibly improve the overall “cost of financing” for a family, having a more long term payoff.
I have a fantastic debt analysis tool that will help us come to the right conclusion about any scenario. It takes into consideration ALL of a family’s debts, and the actual cost of those debts over time. We can then see how different repayment strategies would effect this overall cost, and give advice that will best meet whatever goals we establish.
Ask me about the “Borrow Smart Analysis”! You can begin the process right now by clicking the BLUE button that says “Loan Check up”.
