Why Should You Refinance to Consolidate Debts?

If you have multiple debts you are paying off, one way you may be able to make them more affordable is to consolidate them through refinancing.

In this post, we will explain what the advantages are of using this method to consolidate and manage your debts.

Consolidate Your Debts

1. Stop paying high interest rates. One reason you may be having a hard time paying off some of your debts is because they carry high interest rates. Over time, pouring money into higher interest can erode your finances significantly. When you consolidate your debts by refinancing, they are incorporated into your mortgage. Now, the only interest rate you have to deal with is the one for your mortgage itself. If that is significantly lower than the previous interest rates you were paying, you can save  money over the long haul.
2. Boost your credit score. If some of your existing debts involve the use of credit, your credit utilization ratio should decrease when you consolidate. There will also be a reduction overall in your quantity of debts. The result can be a boost to your credit score.
3. Keep track of your finances. Some borrowers have a difficult time keeping up with their debts because they lose track of what they need to pay. But that is pretty much impossible after consolidating all of your debts into your mortgage payment. So long as you remember to make that one payment every month, you will be on track.
4. Adjust your mortgage to better suit your needs. Could your mortgage itself be more affordable, or better meet your needs in other ways? This is a time for you to re-evaluate your mortgage and see if it can be adjusted to help you save even more money.
5. Reduce stress. Trying to keep up with payments on high interest debts is stressful. Once you get rid of the high interest and consolidate everything into one simple payment, you will be able to breathe easier.

Consolidate Your Debts and Start Saving Now With MMS Mortgage Services

MMS Mortgage Services helps homeowners in Farmington Hills and throughout Michigan to streamline their finances and save through debt consolidation. To find out how we can help you meet your financial goals, please give us a call at (248) 788-0800. We are also licensed in Alabama, Colorado, Connecticut, Florida, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Michigan, New Hampshire, North Carolina, Ohio, Pennsylvania, Rhode Island, and Tennessee.