Mortgage Refinancing Should Be Part of Debt Management StrategyBy Richard Barrington
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Mortgage rates have now fallen half a percentage point since the middle of last year, and whenever rates fall it is natural for people with fixed rate mortgages to consider refinancing. If you find yourself in this situation, try approaching refinancing as part of a broader debt management strategy.
Mortgage Rates Likely Offer the Best TermsA true debt management strategy should go beyond simply consolidating debt. To make tangible financial improvement, you need to consider how debt consolidation might also ease your debt burden.
Replacing ordinary consumer debt with mortgage debt can have a tangible financial impact in two ways:
Take Control of Your Debt BurdenThese suggestions are predicated on the assumption that consolidating debt into a mortgage is part of a plan to take control of your debt burden. This means having a realistic budget for making the monthly payments--both now, and if your mortgage rates are subject to change in the future. Remember, mortgage debt is secured by your home, so if you can't realistically budget to make those payments, then don't include additional debt in your mortgage refinancing.
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About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.
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