One of our best sources of wealth is in the equity of our homes. That equity can be accessed for debt consolidation, home remodeling, or college tuition. Whether you are looking for a second mortgage, a home equity line of credit, a home equity loan, or a cash-out refinance of your existing mortgage, your home can probably help you accomplish what you need. So, how does it work?

The ABC's of Home Mortgage Refinancing

When considering a cash-out refinance, a home equity line of credit, or a fixed rate second mortgage, one of the first things your lender will ask you is, "How much equity do you have in your current home?". With home equity and decent credit, most borrowers can qualify for home mortgage refinancing enabling them to consolidate debt or use their equity for other pursuits. However, is consolidating debt a good use of your cash out refinance?

Lower Interest Rates and Tax Deductible Interest
The interest rates on credit cards are generally higher than the mortgage interest you pay on your home, regardless of whether or not the interest is on a second mortgage, a cash out refinance, a home equity line of credit, or a home equity loan. Mortgage interest is also tax deductible whereas credit card interest is not. This may save you money at tax time year after year.

So if you are worried about consolidating debt, paying for little Johnny's college tuition, or simply want a new kitchen, look at the equity in your home and consider a cash-out refinance, a second mortgage, or home equity loan. The money you need might just be a phone call away.