Just stumbled across an article about a family who refinanced their home to lump all their debts into one payment. Apparently, they're saving hundreds each month, but it got me thinking... sounds good in theory, but is it really smart to tie credit card debts and car loans into your mortgage? Feels kinda risky, you know, putting your house on the line like that. Curious if anyone here's done it or has thoughts on whether it's worth it.
Agree, it's definitely tempting when you see those monthly savings, but a few things to consider first:
- You're stretching short-term debts into long-term ones, meaning more interest overall.
- Risking your home for unsecured debts like credit cards can be dicey.
- It can work if you're disciplined, but tread carefully...
Refinancing can def make sense sometimes, but I wouldn't totally dismiss it just because you're stretching debts. If you use the freed-up cash flow to tackle the principal faster, you might actually save interest overall. Seen it work well for some folks...depends on your discipline though.
