While your financial situation is not bad, it could be better. Someone suggested that you take out a second mortgage and use the money to improve your financial condition. Perhaps you are dubious about adding another debt making things better. In fact, using the money responsibly could do wonders for you now and in the years to come. Here are four ways that mortgage could make a lot of difference.
Simplify the Budget
You have no trouble covering your monthly obligations, but keeping up with multiple due dates can be a little tiresome. It seems as if you need to sit down every week to review the budget and make sure there is not a payment due that you overlooked. Wouldn’t you love to simplify the budget and spend less time tracking what has and has not been paid?
You could take out a second mortgage and use it to pay off everything but your primary mortgage. If you have several credit cards with open balances and possibly a small loan or two, imagine how much easier the budget could be managed if those line items were eliminated. Once those other debts are settled, you are left with two to take care of rather than a dozen.
More Positive Comments On Your Credit Reports
The money from the second mortgage could also result in more positive comments on your credit reports. It’s not just the fact that all of those creditors report you’ve paid off the accounts in full. It’s also the fact that the mortgage lender routinely reports that you are making the payments on time. That will only help your credit score and come in handy if some sort of financial emergency does arise.
Save Money on Interest Charges
The average rates on Hamilton second mortgages tend to be completive with rates offered on unsecured debts like credit cards. The mortgage rate could also be lower than the one on your car loan. When you use the money to settle those other debts, you will end up repaying more interest over the life of the second mortgage. The savings over the next several years could be significant.
Free Up Some of Your Monthly Income
You are also likely to find that the monthly payment on home loans in the area compares favorably with the cumulative amount you were paying on all those individual debts. The result is more of your monthly income is freed for use on other projects. One of those projects could be setting aside more money in savings and creating a resource you can call upon if an emergency arises.
Only you can decide if securing a second mortgage will make a difference in your financial well being. Sit down with a financial planner and explore the potential advantages of this approach. If it turns out to be a sound strategy, work with a broker to find a mortgage with the best terms and conditions possible.