A recent survey from Discover Personal Loans (link here) https://investorrelations.discover.com/newsroom/press-releases/press-release-details/2021/Americans-with-Medical-Debt-Are-More-Worried-about-Making-Payments-than-Getting-Better/default.aspx indicated that 58% of Americans took steps to address an unexpected expense since the beginning of the Covid-19 pandemic.
Many homeowners have taken on new debt. Medical expenses, buying new equipment for working from home, adding better Wifi and phone capabilities, more spending has occured over the last six months. With costs in gas rising as well, people are going to see less and less savings. In addition, home prices continue to increase and show no immediate signs of slowing down. That is one positive for home owners.
The question then becomes, why not do a cash out refinance and consolidate your debt? Cash out refinances are a great way to consolidate debt and reduce overall expenses. With interest rates still low, a cash out refinance might not be a bad option. A cash out refinance allows you to access the equity in your home without having to do a second mortgage or a home equity line of credit. Keep in mind there are still closing costs assocaited with a new loan. That is something you need to think about.
Our professional staff at All In Mortgage is always ready and able to discuss your loan options with you. Reach out to us today and we will assist you.
