If you have a car loan or credit card debt, the interest rates could easily be twice that of your mortgage rate.By refinancing and consolidating debt, you will see immediate monthly savings in your payments.
One is that usually a mortgage has a lower interest rate than other debt.
You’ve probably noticed how low mortgage rates have been during the past few years.
The 30-year mortgage rate hit 3.31% in November 2012, the lowest rate in history.
Debt consolidation is a strategy to roll multiple old debts into a single new one.
Ideally, that new debt has a lower interest rate than your existing debt, making payments more manageable or the payoff period shorter.