Sarah A. Colucci, York Region's Mortgage Expert. Savings Guaranteed.
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Consolidate High-Interest Debt By Refinancing

Credit card debt can be expensive and can end up taking a lot of time to pay off. Many credit card holders struggle with paying down their credit card balances, making only the minimum monthly payments until they get caught up or finally resolve the balances through debt consolidation. 

Often, borrowers feel like they will never get caught up on their high interest credit cards and barely make any progress towards paying them off.

One way to help pay down credit card debt is by refinancing high interest rates into new loans with lower interest rates. It’s common for borrowers who carry high rate credit cards or other types of loans, like student loan debt, to refinance their debts. Mortgage rates are usually lower than other types of borrowing costs, and refinancing can help pay down higher rate balances, like credit cards.

When you refinance any type of loan, whether it’s a mortgage loan or credit card debt, you are most likely going to extend the term of your loan. This means that instead of making interest-only payments for 5 years on a high interest credit card, you make interest-only payments for 30 years on your new mortgage loan.

While it might sound like refinancing any type of debt will only make the burden worse, with lower mortgage rates, borrowers can actually pay off their debts faster by paying more principal than interest towards their loans. For example, if you had $10,000 worth of credit card debt at 19.99% interest, compounded daily, you would end up paying over $20,000 in interest alone if you only paid your credit card off during the five-year loan term.

It is possible to pay down this same amount of high interest credit card debt by making monthly mortgage payments with less than 20 years left on the term. Consolidating high interest credit cards into one low mortgage payment can be a great way to save money and pay down debt more quickly.
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Address

411 Queen St. 
Newmarket, ON
​L3Y 2G9

Sarah A. Colucci, Mortgage Agent Lic. M14000929
Sherwood Mortgage Group
Licence # 12176

Telephone

Direct: 647-773-4849
​
Email: scolucci@sherwoodmortgagegroup.com
Picture
  • Home
  • WHY USE SARAH FOR YOUR NEXT MORTGAGE
  • APPLY ONLINE
  • PRODUCTS
    • Free House Value Tracker Report
    • CASH-BACK MORTGAGE
    • BRIDGE FUNDS
    • REVERSE MORTGAGES
    • SELF-EMPLOYED MORTGAGES
    • FIRST-TIME HOME BUYER PRE-APPROVALS >
      • FIRST-TIME HOME BUYER TAX CREDIT
    • MORTGAGE REFINANCE >
      • Prepayment penalties
    • SPOUSAL BUYOUTS
    • INVESTMENT PROPERTIES AND RENTALS
    • BRUISED CREDIT
    • PRE-APPROVALS
    • NEWCOMERS
    • DEBT CONSOLIDATION
    • HOME EQUITY LINE OF CREDIT
    • PURCHASE PLUS IMPROVEMENT PROGRAM
    • WHY INVEST IN REAL ESTATE
    • MORTGAGE RENEWALS >
      • New Mortgage Rules and Mortgage Renewals
    • SECOND MORTGAGE LOANS
    • LESS THAN 20% PROPERTIES
    • DOWN PAYMENT
  • CONTACT ME
  • PRIME RATE CANADA
  • CLOSING COSTS
  • DOCUMENTS REQUIRED FOR MORTGAGE FINANCING
  • MORTGAGE DICTIONARY
  • MORTGAGE NEWS
  • GOVERNMENT MORTGAGE RULES
  • MORTGAGE TIPS
  • HOUSE HUNTING CHECKLIST
  • APPRAISALS
  • FIXED OR VARIABLE RATE?