Tips To Paying Off Your Debt With The Help Of Your Property

People commonly acquire debt by buying services and goods on credit and paying for it at a later date with credit cards, a personal loan, or a mortgage. In the United States, consumer debt is extremely high, which has caused many citizens to seek ways to decrease and consolidate their financial obligations. Luckily there are several ways to help to get your debt under control, especially if you own a home. If you live in or around the areas of West Palm Beach, St. Pierce, or Tampa Bay, Florida, and are interested in learning more about improving your current financial situation and consolidating your debt, CTC Mortgage can work closely with you to understand your options. Continue reading to learn some tips to paying off your debt with the help of your current property.

Understanding How To Take Advantage Of Your Home’s Equity

Your home likely is one of your most valuable assets and serves as a hub of stability for you and your family. As you continue to make your monthly payments, your home builds equity and increases in value through appreciation. If you have been able to pay off a substantial amount of your home loan, you have the opportunity to refinance your mortgage by taking out a higher new mortgage amount in exchange for a more practical way to consolidate your debt. It is important to mention, however, that refinancing a mortgage will require the payment of closing costs and homeowners insurance premiums, so you will want to speak with your lender to determine if this option will make financial sense for your situation.

Options To Consolidating Your Debt By Using Your Property

There are many ways to consolidate your date by using your home equity, including:

• Rate and term refinance – This refinancing option allows you to obtain a new home loan that has a longer term length and/or better interest rate. This will lower your monthly mortgage payment and allow you to afford to pay off other debt.
• Cash-out refinance – This type of refinance will allow you to exchange the equity that has built up in your home for a cash amount by replacing your existing mortgage for a new one with a larger balance. The borrower is still required to make monthly mortgage payments, but they are allowed to keep the leftover funds, which they can then use to pay off other debts.
• Home equity line of credit, (or HELOC) – This financing option also allows you to borrow against the equity in your home, usually at a lower interest rate than a personal loan or a credit card. A borrower can draw from the HELOC just like a line of credit to pay off other high interest debt and then has the opportunity to pay it back each month during a specific draw period.

If you are interested in learning more about consolidating your debt with the help of your real estate investments in West Palm Beach, St. Pierce, or Tampa Bay, Florida, contact CTC Mortgage today for a consultation.