When comparing interest rates on home loans with other types of consumer debt such as credit cards or automobile loans it becomes immediately clear there’s quite a bit of difference.Why the disparity? Home loans are secured by real estate while credit cards are not.Other installment debt such as an automobile loan can also carry higher rates compared to a home loan. Consumers can always renegotiate the interest rate on a credit card or other types of debt but even then the rates are still higher than what is offered for a mortgage.That said, home owners can replace those higher rates with a lower one by refinancing an existing mortgage, pulling out extra cash during the process and paying off those high interest rate accounts. How?
Here are four mortgage refinance options for consolidating debt.[Read more…]