Finance home re finance loan debt consolidating

Fast forward to March 31, 2016, and it inched up only slightly, to 3.71%.This has been great for homeowners who want to lower their monthly mortgage payment by refinancing to a lower rate.Debt consolidation through a cash-out refinance mortgage involves taking out a new loan to pay off other loans, such as student loans, auto loans, personal loans, medical bills, credit card balances, or other credit accounts.The interest rate on some of these other types of debt may be very high, so a cash-out refinance may alleviate some of that financial burden.

In other cases, these accounts can be large, revolving second mortgages or home equity lines of credit.First, you may be able to get a lower interest rate on your consolidation loan than you were paying on your various other debts.With interest rates on credit cards often ranging from 12-18 percent, that can produce a real savings.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.