Here’s some news, in case you haven’t heard: the Federal Reserve has dropped rates to their lowest levels in years. There’s never been a better time for Dallas homeowners to pull equity out of their homes, lower their monthly payments and get rid of that unsecured debt.
Here’s why: credit card companies are out to enslave you. Unless you’re one of the lucky people who have a credit union credit card, chances are that they’ll keep raising your interest rates regardless of whether or Debt Relief Texas not you make timely payments (it’s true – MBNA raised a customer’s rate to a usurious 28% despite the fact that he’d never been late on a payment!)
Why do they do that? Because they can. Read all that fine print on the back of your credit card agreement. There’s a good chance that somewhere in there is a statement that says they can raise your interest rates for any reason, at any time.
Need more convincing as to why you should refinance now? Taxes. Before the “Reagan Revolution,” people were able to deduct credit card interest. Well, the credit card industry lobbyists who own most of our members of Congress fixed that back around 1982. Part of Reagan’s tax reform was to eliminate that interest deduction for ordinary working Americans. And of course, just to kick American working people in the teeth while they’re down, recent legislation not severely curtailed bankruptcy protection for the American worker, they allowed credit card companies to double their minimum payments!
The good news is that when you consolidate that debt with an equity loan, that interest does become tax deductible in most cases (ask your tax advisor about this), which could save you thousands come April 15th – and you’ll wind up with lower monthly payments to boot!
Finally, when you refinance and pay off your high-interest credit cards it will usually improve your credit score – which is no bad thing, since it entitles you to lower rates and fees on almost everything.
Unlike a mortgage company, your Dallas mortgage broker is just that – a broker with access to hundreds of different programs. These programs are competing for your business, and that gives you a lot of options.