Using A Mortgage Refinance For Debt Relief

Many people are considering a mortgage refinance because of low interest rates. A mortgage refinance can have many advantages, especially when you're trying to improve your cash flow.

If you have high interest debt, like credit card debt for example, you should consider a mortgage refinance. The interest rates on a mortgage, even if it's a second mortgage, are always lower than credit card interest rates. The added costs of interest on credit card debt can cripple you and make it very hard to ever pay the entire debt back. With a mortgage refinance, you can end this vicious cycle.

Mortgage refinancing can also be a good idea when you need extra cash for whatever purpose. If you currently have equity in your home, a mortgage refinance can give you possibilities to trade this equity for cash. The freed up cash can be used for any purpose you want.

The rolling up of debt into a mortgage refinance can lower your monthly costs and give you more financial breathing room. Keep in mind that you will incur some added costs with a mortgage refinance, so plan ahead before the closing.

If you have a trusted financial advisor, you can ask him or her to show you the exact picture of a mortgage refinance so you can judge if it's worth the trouble or not. Also, if you're currently a senior, you may consider looking at mortgage refinance options. In this case, a reverse mortgage may also be right for you and give you the money needed to retire with financial certainty.