In this video I go over when to use the equity in your home to refinance and pay off your credit card debt
When To Use Your House To Pay Off Credit Card Debt
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Card, Credit, Debt, House
- Categories: Debt Consolidation
You’re not saving money if you refi and add tons of credit card debt to your mortgage for 20-30 years when you could have paid that off within a few years.
Drowning in credit card debt – husband was downsized from good job (100K+) 4 years ago – because of his age has not been able to find another one – YET. Very close to making it happen but subsequently have had to cash in mutual fund pensions and then recently max out the credit cards. Have a life insured mortgage with the bank of $197,000. Also have two lines of credit with the bank -one life insured for 30,000, the other not life insured for 14,000. Other credit card debt is now 75.000. House is worth (conservatively $650.000. So, there is about $450,000 equity. Although we are receiving almost $2000. per month in Govt Pension and OAS it is not enough to cover all anymore. As I said, my husband is very close to securing a new job but delays and waiting, waiting, waiting when ageism is rearing its ugly head is making life difficult. Help!!!
Looking at equity is a good idea, I would just remind those looking at this option to know all the fees and costs before proceeding with the mortgage financing. There might be discharge fees (costs to break your old mortgage), appraisal costs, lawyer costs, lender fees (to get the new financing). Once you know the costs you can compare apples to apples and see which option works best for you. It can also help with your conversation with your spouse.