historical analysis of college campus interracial dating - Finance home re finance mortgage debt consolidating

However, there are some things you need to be aware of.

Debt consolidation is not debt elimination Since debt consolidation clears the debt from your credit cards, the temptation is to think that you’ve paid off the debt. You’ve merely transferred the debt to your mortgage.

Before going ahead with the decision, make sure you’ve done your homework and sought professional advice to see if it’s the right choice for you.

Once you’ve made the decision to refinance, it is imperative to thoroughly consider all the options available to you, to ensure that it is a worthwhile process to undergo.

So, once you’ve consolidated your debts, consider snipping your credit cards in two. Remember the 80% LVR threshold When you took out your mortgage, you might have been under the 80% loan to value ratio, which meant that you didn’t have to pay lenders mortgage insurance.

Be careful when you consolidate your debts that you don’t reduce the equity in your home and have to pay lenders mortgage insurance.

However, make sure you tally up all the fees involved in switching loans to see if you are saving a enough to make the process worthwhile.

Although exit fees were abolished in Australia in July 2011, fixed agreements made prior to this date may still incur an exit fee.

Personal loans aren’t tax deductible Interest charges on an investment loan are tax-deductible but interest on a home loan isn’t.

When you consolidate your debts, you need to be mindful of how much interest you can claim as a tax deduction.

There will also be transaction fees on the refinancing.

These fees must be calculated before embarking on a loan refinancing, as they can wipe out any savings generated through refinancing.

It can either be done internally (with the same lender) or externally (with a different lender).

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