Consolidate your debt
Interest rates are historically low which means consolidating your high interest debt makes sense. Now is a great time as rates won’t stay this low forever. If you have 10 credit card and installment payments that you are making each month, you can simplify buy combining all your payments into one payment.
The average credit card interest rate is about 15%. Average mortgage rates are in the 3-4% range today. By consolidating all your high interest rate debts into one low interest rate, you can save a ton of money and interest.
Another benefit of paying off revolving debts is to improve your credit. Most people don’t know that over utilizing your credit cards can cause your credit scores to drop lower than normal. By doing a debt consolidation refinance, you can dramatically improve your credit score which in turn will save you money in other financial areas. Did you know that having good credit scores can save you money on insurance in some cases?
What’s required to do a debt consolidation loan? To start, you will need to qualify to refinance. We look at your income, credit, and how much equity you’ve got in the home. Most folks who have high balances of debt also have high debt-to-income ratios. Paying off these debts will help lower the overall debt-to-income ratio and should give relief as far as disposable income. Here at Equinox Home Financing, we can help you consolidate your debts. Call or Apply today to get approved.