With an ever increasing cost of living, many people look for ways to reduce debts and save money. Your home mortgage may be one debt that costs the most each month. Since home prices are higher than credit card bills or other big purchases like cars or boats, your monthly mortgage payment may be eating away at the money you bring home each month.
Did you know there is a way to reduce the number of bills you have to pay each month and possibly reduce your interest paid?
It is possible to consolidate your other bills into your home loan. Rockingham residents should speak with a local broker about combining current bills into a refinanced home loan. There are a number of different advantages to debt consolidation that won’t affect your credit score or hurt your financial report.
Reduce the Number of Bills You Receive
If you have loans on various items, plus you use credit cards for purchases, you probably receive at least four to five bills each month that go towards paying off purchases. While you can’t consolidate your monthly utility bills, it’s fairly easy to reduce the number of bills you have to sift through each month by consolidating everything into your mortgage payment. Instead of receiving a half dozen bills, you’ll get your utility bills and your mortgage bill.
Refinance Your Home
You can take advantage of debt consolidation and home refinance. Speak with a mortgage broker in Rockingham about refinancing your home and consolidating your bills. It’s a good idea to refinance when interest rates go through a low period. This way you can refinance at a lower interest rate, consolidated your bills, and end up paying less on your debts in the long run.
When refinancing a home loan, Rockingham brokers can secure you a low interest rate and work with your creditors to pay off any debts. In some situations, you will be given a cheque to pay off debts on your own; in other situations, you may have to rely on the refinance company to pay off the debts for you. The best part is that all of your debts will roll into your mortgage payment at the same interest rate. This helps reduce the amount you spend on interest each month, reducing the overall amount you spend on payments.
If you aren’t sure if debt consolidation is right for you, speak with one of our professional mortgage brokers in Rockingham. You may just be an application away from saving significant amounts of money each month.