In addition to reducing the interest you pay, mortgage interest is typically tax deductible, while credit card interest is not.
The biggest disadvantage to using your home equity to pay down other debt is this: if you cannot repay your new loan, you could lose your home to a foreclosure.
The first steps to take in creating your plan are to: [PDF 73K] to help think about which changes you can make if you find yourself facing financial difficulties.
If you’ve put your Plan B into action and still find yourself having trouble paying the mortgage, you should: Recognizing predatory lenders Unfortunately, when dealing with foreclosure not all mortgage lenders or credit repair companies have your best interest in mind.
If you do not pay your monthly mortgage payment, you are technically in default on your mortgage.
If you have several credit card accounts with a balance, you could benefit from consolidating your debt by reducing your interest rate and having only one bill to pay.
Robert Henderson, financial advisor, Mystic, Connecticut: The advantages to refinancing your mortgage are numerous.
The first advantage of refinancing is lower interest rates.
These difficulties are all warning signs of financial problems that can lead to foreclosure on your home if you do not act quickly.
They include: Talk to a housing counselor immediately if you see these signs (see sidebar for help finding a legitimate counselor).