Consolidating debt with a new mortgage

You’ve probably noticed how low mortgage rates have been during the past few years.The 30-year mortgage rate hit 3.31% in November 2012, the lowest rate in history.If you’re a homeowner, one way you may be able to reduce your balances — or at least the rates you’re paying on them — is to utilize the equity in your home.You can do this by refinancing your existing mortgage, cash-out refinancing or taking out a home equity loan.

You may be able to use this equity to refinance your current mortgage and receive cash at a low interest rate to pay off your credit card debt.

Home equity is the appraised value of your home minus the amount you still owe on your loan.

The more equity you have, the more money you may be able to get from a cash-out refinance.

Many homeowners take cash out to pay off high-interest debt or make home improvements.

Use our refinance calculator to see if you have enough equity to reach your financial goal.