Question

I’ve been researching this for a few month but was wondering if anyone here has refinanced their mortgage to pay off debt? And if they could share their experience. I am looking for the pro and cons to it from real people. We have been consumer debt free for almost a year but have 80K in student loans. Half is from my education and half is a parent plus loan. Our mortgage is currently about 20% of our monthly income and we put down a 47% down payment when bought it so we have equity.  

Answer 1

I refinanced in October in order to pay off debt. I was into my mortgage for about 5 years when I did the refinancing. It reduced the rate, paid off the debt and my payment was lowered by about $100 per month. With the lower payment and the additional $500 I’m saving in debt payments, I can add an additional mortgage payment or two per year.