My parents recently suggested I refinance my home to help with some of my debt, but how does that help/work?
I bought my house in 2020 for roughly 275,000 its current market value is close to 400,000. From my understanding I can use the difference in value to help pay for the loan, but how exactly does that work? And how do I go about it?
In: Economics
The traditional way of doing it is that you take out a new mortgage on the property for the amount you still owe and use that to pay off original, essentially restarting your term with a lower amount making for a lower monthly payment.
If you have high interest unsecured debts you could roll those in and probably end up paying less each month than servicing them all separately.
Latest Answers