Debt consolidation is an easy way to save money each month
Although rates have jumped considerably from the lows of earlier this year, there is still a tremendous opportunity to refinance and save money through debt consolidation.
I recently worked with a couple that had a rate of 5.625%. We were able to refi them with no points and no closing costs into a 30 year fixed rate of 5% while cashing out enough to pay off their second mortgage, three credit cards and a high interest school loan. The total monthly savings was over $900/month!
This money, if pre-paid against the new mortgage, would actually pay off the new loan in just a bit over 10 years! However, this may not be the best use of these freed up dollars as this couple has two young children and no college funds. Also, although they both have retirement accounts, they are under-funded. Most likely a combination of a college funding plans and increased contribution to their retirement accounts would make the most sense.
I’m referring them to a qualified financial advisor to make the best choice for their family.
If you would like to see what we can do for you, simply email us at thechaffeeteam@mfsinc.com or give us a call at 802-658-5599.
