If you are a homeowner with spiraling debts and limited cash flow, you have options to get your debt under control. One practical solution to your cash flow problem is cash out mortgage refinancing. Here is what you need to know to get your debts under control.
Is your monthly budget feeling the strain of your credit card bills? If you are like many other homeowners by the time you have paid your mortgage, utilities, insurance, and credit card bills there is very little left for anything else. If you have equity in your home you can use this to consolidate your higher interest debt into one manageable monthly payment. This works if you can get your spending habits under control; cutting up your credit cards may be the only option to prevent a relapse of credit card debt.
Cash out mortgage refinancing is simply taking out a new mortgage to pay off your old mortgage and take a portion of the equity in your home. The difference between the balance of your old mortgage and the amount of your new mortgage will be paid to you by the lender at closing. You can use this cash to pay off your credit cards, auto loans, and other high interest debts.
Refinancing your mortgage has other benefits; you may qualify for better terms and interest rates than when you originally financed your home. If this is the case you could find a mortgage with lower monthly payments and pay less to the lender in interest. Sounds great right? There are a number of problems when it comes to refinancing your mortgage. These problems come from the numerous and costly mistakes homeowners make when taking out a mortgage. These mistakes could cost you thousands of dollars and rob you of any potential savings you could be realizing.
To avoid making these mistakes you need to do your homework and research a variety of mortgage lenders before applying. To learn more about avoiding common mortgage mistakes and save money in the process, register for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: http://www.refiadvisor.com