For Americans, being in an exuberant amount of debt is something most people struggle with. Whether you have an automobile loan, student loans, a mortgage, or have a balance on multiple credit cards, you are experiencing some type of debt. So if this is you and you are looking for ways to pay off your debt or consolidate your balances into one monthly payment, you can do so by refinancing your existing Katy mortgage.
Mortgage rates have continued to be extremely low over the past few years, which means it would be in your best interest to refinance your mortgage to receive the current low rates being offered on the market today. To compare, 30-year mortgages for conforming and government-backed loans have a current interest rate of around 4.63%, and the average interest consumers are paying on their credit card balances is approximately 15%. This drastic difference shows that refinancing your mortgage to pay off your credit card debt can help save you about 10% of what you are currently paying every month to credit card companies.
To help you get a better understanding, your local Katy mortgage lender with Austin Capital Mortgage Inc. has explained how you can consolidate your debt into one payment through cash-out refinancing.
What Is Cash-Out Refinancing?
If you have been paying off your current mortgage for a while and have accumulated a lot of equity in your home, you can access this money by refinancing. It is common for people to participate in cash-out refinancing and use their home equity to pay off large amounts of debt.
With refinancing, not only will you have a lower interest rate compared to your original Katy mortgage but you will also have cheaper monthly payments. Also, by consolidating your debt into one payment, you will not have to worry about paying off multiple companies at different times.
Estimate your loan-to-value ratio so you can see how much money you can borrow against your home by accessing the equity that is available.
For more details on how to consolidate your debt or to get started on the refinancing process today, please contact your local Katy mortgage lender at 512-891-0778.