Coming at you with more information on Debt Consolidation
Cash Out Refinance, what’s up!!
Look, we have got to be careful It’s real easy to think,
“Hey, I’m going to save $300, $600, $800 a month”
It’s a good thing to do, but we have got to appreciate the pros and cons of things
and your actions after the refinance can completely take away the benefits of the “Refi”
Here is what I am thinking, I had a couple of school teachers
That I helped and they have sold their house
They were buying another, I had them pay off their cars
With some of the money and they took the savings
And invested it into a mutual fund for their future
That whole thing made sense, but what I was explaining to them was
If they are going to have a car payment again in the future.
And that is where debt consolidation refi can hurt you
So, if you pay off your car with your equity in your home
That’s fine and it saves you a bunch of money
But you have got to appreciate, you just took that car loan and wrapped it into 15, 20, 30 yr loan
Well, you are not going to keep you car 15, 20, 30 yrs..
So if rolling your car into your mortgage
took you from, maybe you raised your mortgage payment +$100 a month
But saved you a $600 car payment , so you have $500/month
That’s cool, but you have got to understand if 3, 5, 7, 10 yrs down the road
You are buying another car, you are still paying that $100/month in your mortgage
And therefore it’s starting to not really benefit you
So, when you are rolling debt into your house we have to be mindful of the current situation
but also how it could bite you down the road
Recurring debts like cars and stuff can get you into trouble
Same thing, we pay off a whole bunch of credit cards
and life happens and you run those credit cards back up
you just wasted your equity, we have to protect your equity
Here is what I recommend, we need to be very careful
About rolling things like your car payments
Regarding credit cards, if we are going to save you $300 or $500/month
Let’s have a conversation, I can put you in touch with a Financial Adviser
Let’s take that $300-$500/month and invest it and do something smart with it
because that’s where the benefits are
Wealthy people always tell you, making your money work for you
Is the key to wealth, you cannot earn enough income to be wealthy
It’s about making your money work for you, and I help people with that all the time
Im Scott DiGregorio, Your Mortgage Guy
I’ll catch you on the next video please reach out to me with any questions, take care.
