Refinance mortgage loan debt consolidating
Consolidating the two into a new, 30-year mortgage at 4.5 percent saves about ,642 in interest.Consolidating the two into a 15-year mortgage at 4.5 percent saves almost 0,000 more. This debt consolidation calculator is designed to help determine if debt consolidation is right for you.Fill in the loan amounts, credit card balances and other outstanding debt.But it can also help you get rid of high-interest credit card debt.Almost 10 percentage points separate the average 30-year mortgage rate (3.71%) from the average credit card interest rate (13.66%).First, you may be able to get a lower interest rate on your consolidation loan than you were paying on your various other debts.With interest rates on credit cards often ranging from 12-18 percent, that can produce a real savings.
A ,000 credit card balance at 16 percent interest plus a 0,000 mortgage at 4.5 percent interest rack up 0,936 in interest payments over the life of the loans.Fast forward to March 31, 2016, and it inched up only slightly, to 3.71%.This has been great for homeowners who want to lower their monthly mortgage payment by refinancing to a lower rate.You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Debt is a major problem for many American households — especially those that have credit card debt in addition to mortgages, auto loans and student loans. Many cardholders pay higher rates on higher balances. households carry an average of ,762 in credit card debt, and in 2015, they paid an average interest rate of 13.66% on it.
Second, you may be able to set up a consolidation loan that lets you pay off your debt over a longer time than your current creditors will allow, so you can make smaller payments each month.