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Many homes have increased in value significantly
over the past few years. If you have built up substantial home equity,
it may be a good idea to use some of it to pay down your other debts.
Home equity loans carry low interest rates because they are secured
with your property, which makes them an excellent choice for a debt
consolidation loan. .
If you're thinking about a new mortgage, another good option is
cash-out refinancing. This allows you to turn your home equity into
cash to pay off what you owe, and then add that amount to your primary
mortgage. Your new principal will be higher, but your rate will
almost certainly be much lower than what you are currently paying
on your consumer debts and you'll have the convenience of a single
monthly payment.
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