It may be time for a cash-out refinance, but time is running out to get the best terms
Total US household debt continues to climb even as borrowing costs rise with higher interest rates, particularly on credit cards. The total debt level recently hit a record amount of $16.5 trillion…with a T!!!
While over $11 trillion is attributed to mortgage debt, that leaves $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 reasonably 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 5s 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. I can help you determine the “blended rate” of your various debts, the effective interest rate you’re paying across all of your loans (including your mortgage). If your blended rate is over 5%, then its time to consider a cash-out refinance.
Consider the following graphs…according to CreditCards.com the national average credit card interest rate is nearly 20%, the highest mark in the last 20 years. With The Fed suggesting further increases to the Federal Funds Rate, this will lead to even higher credit card rates.
Meanwhile, mortgage rates have been falling as credit card rates have been rising. 30-yr mortgage rates dipped below 6% this week for the first time since September. 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. There is a small window this month before cash-out refinances cost thousands higher in fees due to industry-wide changes to these types of loans, so give us a call now & allow us to assess your cash-out refinance options.
**The chart above is for illustrative purposes and not intended to be used as a rate quote. Rates vary based on loan size, credit scores, and many other factors. Give us a call to get a customized and competitive rate quote.**