Debt Consolidation and Mortgage Refinancing

[Norsky]

Hi,

Most people in the US are looking to get a mortgage refinancing since the interest rate are still relatively low and use the money for the much needed repairs and improvements on their home. Also its good to get some money for their childcare's education.
Or...As a means for debt consolidation. By refinancing, you can take out the money and pay off your high interest yielding credit cards and loans or whatever type of debts you may have.

But what are the pros and cons to this?

Please share some of your experiences here or any comment is welcome and much appreeciated.


Thanks,
Norsky

[sanne]

I believe that most people who would get mortgage refinancing are set on using it for home improvements. As what my brother did, he took a mortgage refinancing recently and use the money to put up a new deck in the back of the house.

I heard of people who would use it fro their children's education. This is every common if the parents cannot afford or do not have the cash on hand for their children education.

Thanks
Sanne

[Cenon]

There are so many things you can do with mortgage refinancing and it all depends on where you may need the money for. For me,as long as I can manage I wold rather not do it but if the circumstances are right such as low mortgage rates, then i wold not hesitate to do it.


Thanks
Cenon

[Vulaw]

Some people do get mortgage refinancing in order to consolidate all their debts into one easy monthly payment as the the other member has said. so its not a matter of choosing between debts cosnolidation loan and mortgage refinancing but rather do you need get mortgage refinancing so you can consolidate your debts into one easy payment every single month.

Thanks
Vulaw

[Senoni]

As long as you have equity on your home and want to get mortgage refinancing, that would be the best option. While debt consolidation is another good option, there are too many fees and and other variables that goes with it.
For debt consolidation loan, you are simply putting all your credit card debts and other indebtedness into one single loan so you can pay one payment a month. But this has its pitfalls.


Thanks
Senoni