Use your Home Equity to reduce your personal debt.
Why pay high interest rates on your bank’s credit card debt when you can refinance/restructure that debt to your mortgage and lower your monthly payments?
By consolidating debt in a secured loan, backed by the equity in your property, you can access interest rates lower than even a personal line of credit would allow
You can refinance and consolidate your mortgage and other debts into one loan of up to 80% of your home’s value
A HELOC is a line of credit backed by your home. It allows you to access up to 80% of your home’s value, minus whatever outstanding mortgage balance you may currently have. All HELOCs are variable mortgage rates and give you the flexibility to access as much or as little equity as you wish. In addition, HELOCs do not require you to pay down a portion of the loan principle each month. Instead, your minimum monthly payment is an interest-only payment based on the amount you have withdrawn.
Second mortgage allows you to access more than 80% of your home’s value. If you are finding it difficult to qualify for a larger loan with your existing lender, then a second mortgage may be worthwhile. While second mortgages do come with higher mortgage interest rates, these rates are still usually lower than those of credit cards and personal lines of credit.