As you pay off your mortgage and the value of your property appreciates, you build up the equity available in your home. This equity can be utilized to help you pay off your debt faster with added benefits.
Unlike interest payments for consumer debts (e.g., credit card bills, car payments and student loans) interest payments on home loans are usually tax-deductible. Consolidating these high interest rate consumer debts into your mortgage could help you efficiently pay back the money you owe while receiving added benefits such as tax deductions and lower interest rates.
There are multiple ways your equity can help improve your financial position:
- Reduce total monthly payments
- Increase tax deductions
- Free up cash for added investment strategies
- Free up cash to make extra mortgage principal reduction payments
- Pay off your home sooner
Any decision you make regarding your debt can be tricky. Options Financial Residential Mortgage wants you to feel confident in your decision. If you are considering consolidating your expenses into your mortgage, give us a call today and we can help you determine if it is an appropriate financial option.