What do I need to know about refinancing a house and debt consolidation?

Answer by  matt80 (142)

Prior to refinancing a house, if you're only planning on staying in the house another couple years, it may not be worth it. Debt consolidation can hurt your credit score.

Answer by  tamarawilhite (17883)

A second mortgage is used to consolidate your loans and get a lower interest rate. However, this means that you can lose your home if you do not pay on debts that were caused by over-spending. If you declare bankruptcy on credit card debt, they have no recourse. If the debt is against your house, it could be sold.

Answer by  timeismoney (994)

Mortgage refinancing is usually a good idea when (1) the difference between your current mortgage interest rate and the new one is 2 or more points, and (2) you plan to be in your home for at least 3 more years. Credit card debt consolidation decisions depend on ever changing rate and fee differences when comparing credit cards.

Answer by  Siri (81)

No. of years loan has left,look at the refinance rates,consider the fees and closing costs and finally refinancing for the sake of debt consolidation may not be a good choice because refinancing entailes a new more years mortgage where you pay far more on the debt than you would

Answer by  thilaga (66)

to refinance a home and debt consolidation first u should know about the value of the house u can apporach any bank or service centres who will guide in estimating the home value