Consolidating debt mortgage canada
The most common reason borrowers refinance their mortgage is to take advantage of low mortgage rates.If a homeowner is paying higher interest rates on a loan, refinancing when mortgage rates decrease will allow them to both lower their monthly payments and save on the amount of money required throughout the lifespan of the loan.
We see our credit card balances and other consumer debts, and we can feel as if there is no hope that we will ever pay off our creditors.
This can come in the form of either a home equity loan or home equity line of credit, also known as a HELOC.
These types of loans often feature lower rates than traditional loans, resulting in further savings for homeowners.
Consolidating debt is also an option for homeowners looking to refinance.
By consolidating debt from other sources, such as credit cards and car loans into a mortgage, borrowers can take advantage of low interest rates and simplify their payment strategy at the same time.