You can pay off debt with home equity in other ways — but doing so isn’t always a good idea
Saturday, August 3rd, 2024However, even if you have a situation like this and paying off debt with a cash-out refinance loan makes financial sense, there are some downsides. You’re putting your home at risk if you can’t pay your new mortgage loan, as the lender could foreclose. And there could be substantial closing costs and fees to pay for the new mortgage loan. You need to be aware of the risks — and costs — before you move forward.
A mortgage refinance loan isn’t the only way to tap into equity in your home to pay off debt. (more…)
