US household debt is at an all-time high; it may be time for a cash-out refinance
Spurred by the largest 3-month increase in credit card debt in over 20 years, total US household debt recently hit a record amount of $16.1 trillion…with a T!!!
While $11 trillion is attributed to mortgage debt, that leaves over $5 trillion in car, student, and credit card loans. By my account, that averages to more than $40,000 per household in consumer debt! Many of us are facing harder times with the on-going economic slow down along with surging gas and food prices. With credit card balances & their interest rates at all-time highs, it may be time to consider a cash-out refinance to consolidate high-rate loans.
Home values remain resilient & most homeowners have record levels of home equity. At the same time, mortgage rates are settling down, with our best-priced lenders back in the 4s on 30-yr fixed loans.
Has the economic slowdown forced you to borrow more against credit cards, cars, and education? Borrowing from your equity at a low rate to pay off higher rate debt will lower your overall monthly payments and lower your interest costs over the long-run.
Consider the following graphs…according to CreditCards.com the national average credit card interest rate hit 17.48% last week, approaching an all-time high. With The Fed steadily increasing the Federal Funds Rate, this will lead to further increases in credit card rates.
Meanwhile, mortgage rates have been falling as credit card rates have been rising. 30-yr mortgage rates dipped below 5% last week for the first time since Spring time. Our rates, in particular, continue to be much lower than the industry average (read Our Rates Are Some Of The Best In The Biz).
Let us help alleviate the financial stress of carrying high credit card balances at astronomically high interest rates by refinancing them into a lower fixed rate mortgage. Give us a call & allow us to assess your cash-out refinance options.