Hello. Hope you had a great day today.
Are you a homeowner? Use your home to reduce other debts. No, not a Home Equity Line of Credit (HELOC).
How many times have you refinanced since becoming a homeowner? Once, twice, more? Did you reduce other debts by including them in your refinance? Did the agent you inform you that you could do that to help your family?
Let me give a scenario. You do not have a job to make a payment for each of your debts (i.e., jobs to pay minimum payment on each credit card). Let’s assume you only have one job. Your mortgage, car, credit cards, kids, and even your parents rely on your one job. The next time you refinance put as much of these bills as you can in your home. What? And push up my mortgage debt? Are you crazy, person I don’t know?
No, I am not crazy. Do you know what happens when you refinance? Your first mortgage is paid-in-full to the prior lender. However, the new mortgage you borrow doesn’t begin at the principal that was paid-off. It’s higher, because of all the fees you are not aware of. So why not make the new mortgage higher by including your car note, credit cards, student loans; as much debt as allowed?
Start anew with less debts, fewer payment again your paycheck. Do you think this can help you to begin saving for an emergency and retirement? This is what a tool (Refinance) is meant to do, not keep you in debt for ever.
