Refinancing your home could be an efficient and inexpensive way to consolidate loans, credit card accounts, lines of credit and other personal debts. Mortgage loans carry very low interest rates in comparison to the much costlier rates of unsecured debt.
The equity in your home could also be an excellent method to finance children’s education or renovations and additions to the home. Another benefit to refinancing your home is to repair your credit rating if it has suffered due to too much debt or a slow payment history.
One distinct benefit is the lighter load of monthly payments when all of the debts have been consolidated into one payment. However, you may wish to consider a strategy to reduce debt as quickly as possible and re-establishing the equity in your home by assessing how much you can afford to pay every month and set the amortization to match that payment.