Grande Prairie Debt Consolidation Mortgage Solutions
Do you ever feel like there’s too much month left after the end of the money? Are you tired of feeling like you have no money left after you’ve paid your bills? It is easy to end up that way. Credit cards, car loans, taxes, your mortgage payment, it all adds up. If you have to borrow money to make ends meet, the debt is adding up, too. What’s the solution? There are actually several potential solutions. Call Jodi and her team at Whalen Mortgages, your Grande Prairie mortgage brokers, to learn what you could do to tame your monthly bills and have more money at the end of the month.
There are two main ways out of this situation.
- Make more money.
- Reduce expenses.
Making more money isn’t as easy as it sounds. You may not be able to find a second job or get paid overtime. If you are able to earn more money, it may be whittled away by taxes, childcare costs, gas, tolls and other costs of working.
Reducing expenses is easier than it sounds. Choosing not to eat out as much, canceling subscriptions and making cheaper selections at the store can save you money. Yet we often overlook the short phone call that could save us a literal fortune. You probably can’t get the interest rate on your credit card or car loan reduced. Because they are considered high risk for lenders, interest rates could hit as high as 29%. Miss a loan payment, and the rates will skyrocket immediately. Paying payments on time may bring the balance down. If you had more money to pay down on the loan, it could come down even faster. The problem is finding that extra money.
There’s one major debt that is easy to refinance – your mortgage. Mortgage lenders know that interest rates fluctuate, and people’s life circumstances change. It is common for people to refinance to take out funds and pay out some debt freeing up the monthly income. Refinancing to a lower interest rate because interest rates fell is also common. Many don’t realize that it is probably worth it to refinance your mortgage if your credit profile has improved and shop with a mortgage broker to see the best mortgage rates available in Grande Prairie.
Mortgage refinancing comes with a cost. You may have to pay the lender several thousand dollars in interest, fees or both to refinance. Yet you could save ten times that much – or more – by refinancing the mortgage over the life of the loan. If you’re in a financial bind, refinancing the mortgage will free up hundreds of dollars every month.
You can use a mortgage refinance or home equity loan to tame your other bills, too. Credit cards have a high interest rate because it is structured to be paid off in three to five years. Cash out part of your home equity to pay off the high interest debt, and you’ll be left with a single, low interest loan. The interest rate is lower because it is secured by your home. The overall payment will be lower, too, because it is typically amortized over 25 years.
Refinancing your mortgage could improve your overall credit profile, by paying off maximized credit debt. When you have lower monthly payments you can afford, you will no longer be hurting your credit with late or missed payments or highly utilized trade lines. You might be able to avoid bankruptcy or a consumer proposal, both of which destroy your credit.
Call Grande Prairie Whalen Mortgages today to take the first step toward financial freedom. Jodi and her team are your local Grande Prairie mortgage brokers and we are here to help.
We can help you refinance your existing home to use your home equity to pay off your loan. We could get you out of that expensive second mortgage or home equity line of credit. We’ll help you determine which option is best for you. Call your trusted Grande Prairie mortgage broker Jodi today to find out how much money you could save.