Finance home re finance mortgage debt consolidating
With mortgage interest rates rising, on the other hand, as they have begun to do, this would be an unwise strategy.
Converting to an ARM, which often has a lower monthly payment than a fixed-term mortgage, may be a good idea for homeowners who don't plan to stay in their home for more than a few years.
Refinancing a mortgage means paying off an existing loan and replacing it with a new one.
Unfortunately, refinancing does not bring with it an automatic dose of financial prudence.
Debt consolidation loans allow borrowers to roll multiple debts into a single new one with fixed monthly payments and, ideally, a lower interest rate.
Compare loans for debt consolidation and learn about your options for consolidating debt.
If interest rates are falling, these homeowners can reduce their loan's interest rate and monthly payment, but they won't have to worry about interest rates rising in the future.
While the previously mentioned reasons to refinance are all financially sound, mortgage refinancing can be a slippery slope to never-ending debt.