Can I Refinance My Home To Pay Off Credit Card Debt?

– Do you own a home? Do you have credit card debt you would like to pay off or consolidate?

Hi this is don carricker from iowanogradhomeloan.com and a question i had come up yesterday was can i pay off my credit card debt or other debts with my home loan and the answer is yes you can there are a couple of different ways to do it and it’s made it may or may not be a good idea for you to do it so you probably ought to talk with somebody in person to look

At your entire situation to see if it makes sense but can you do it typically yes as long as you have equity in your home equity is what you’re the difference between what your house is worth and what you owe on it you typically have to have to have it you have to have at least 20 equity in your house before you can get any type of money paid off to pay or any

Kind of money to pay off debts the two ways to three ways to do it actually are you can refinance your current mortgage your first mortgage and get a big enough mortgage to pay off your debt along with the old first mortgage or you can get a closed-in second mortgage where you take out a second mortgage on your house for a certain set amount and you pay it back

In a certain period of time and you’re not you know and then you’re done the loan’s done that’s typically with a fixed interest rate and so is the first mortgage but as far as your home equity line of credit when you’ve got a home equity line of credit that’s the third way a home equity line of credit is where you have equity in your home and you’re able to use

That equity anytime you want to however you want to for up to typically 10 years i have one myself and i use it quite often for investment purposes but a home equity line of credit is an adjustable rate though it adjusts every single month so you’d hate to carry a large balance on a home equity line of credit especially in this rising market so yes you can pay

Off debts with your home loan you can do it one of three ways refinance your first mortgage and get enough cash out to pay off your your debts and your first old first mortgage you can get a closed end second which is a set loan for let’s say you know you get a set loan for fifteen thousand dollars and you pay it off in the next five years something like that

Or you get a home equity line of credit it’s called a home equity line of credit heloc we call it and that gives you a set amount that you can draw into or out of and then as you pay it back you get to use it again for example you know you borrow five thousand dollars against a fifteen thousand dollar home equity line of credit you pay back the five thousand in

A couple of years you get to borrow it all again so it’s kind of a neat way to do it and very convenient allows you to get money out without having to ask anybody’s permission again you can typically do that for 10 years so yes you can pay off your debt you can do it as long as you have equity in your home and you’ve got decent credit but call me if you have any

Other questions on that kind of on a home equity or paying off debt uh my number is 417-844-5370-417-844-5370 if you have any questions about paying off debt it makes sense to do it sometimes and it makes uh terrible sense not to do it you know it makes bad sense to do it in other situations so it all depends on what your particular situation is and you ought to

Talk to an advisor about that have a great day and we’ll talk to you later bye

Transcribed from video
Can I Refinance My Home To Pay Off Credit Card Debt? By Don Carriker | USA Mortgage