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Does it make sense to refinance your mortgage at a higher rate for debt consolidation?

In: Loans, Mortgages, Home Equity and Refinancing, Debt Counselors and Consolidation, Money Management [Edit categories]

Answer:

Answer

It depends on how much debt you have, what interest rates this debt carries, what rate your 1st mortgage is at, if you are disciplined enough NOT to incure any more debt once a refinance has occurred.

If you have a good interest rate on your home loan I would leave that where it is and consider a closed end home equity loan (typically, these loans would be at a rate a bit higher that convention mortgage rates, plus this loan can be written such a way than repayment is spread over many years, and you only have one payment). If you chose to refinance your home, remember that discipline must be maintained to NOT incure any more unmanagable debt.

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First answer by ID3232501266. Last edit by ID3232501266. Question popularity: 68 [recommend question].

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