Sunday, August 30, 2009, AM | 1 Comment
You gotta have a goal, a specific plan when you go to a lending institution and apply for a loan. Most folks do and they get a loan to spend on something that can potentially give them a return.
There are, unfortunately, some who get a loan, at least when the credit was available in abundance, and spend it on something that can be considered wasteful, eventually turning into bad debt.
The loan money goes out the door so fast that some folks don’t stop. They borrow more to try to satisfy the previous one. And this thing keeps going on till the time comes when folks declare bankruptcy.
Refinance loans are a great way to tackle expenses such as these:
Pay off your debt
You may be able to use the equity in your home to pay off your entire credit card debt or other personal loans all at once, saving you money on interest. Interest on mortgage loans is generally tax-deductible whereas interest on credit card balance is not.
This is a good investment or rather reinvestment. It pays to maintain and improve your home’s value. If your home’s value increases, so does your home equity. By using equity to make home improvements, you are reinvesting in your home.
Pay for College
Mortgage interest rates are usually lower than student loan rates, which could save you money in interest payments. Also, unlike student loans, mortgage interest payments are generally tax-deductible. So pay for college for your kids with your equity loan.
Buy a Car
Interest rates are generally lower on mortgage loans than on auto loans, so using your equity may be a better financial decision than getting an auto loan. Also, unlike auto loans, mortgage interest payments are generally tax-deductible.
In a Nutshell
Are you trying to lower the interest rate on your current debts or pay back your debts more quickly? Do you need to make a big purchase? Then mortgage refinance must be just for you.
Interest on mortgage loan is generally tax-deductible whereas other kinds of interest on loans are not.
All those items that are mentioned above will give you some kind of return in the long run.Facebook.com/doable.finance