Use your house to pay off debt?
Can I use my home to pay off some debt?
I know people in the industry and your neighbors are saying, “Hey, they use their house like an ATM machine.” If it could put you in a better financial situation, then do it. If it’s gonna put you in a worse financial situation I wouldn’t do it.
However, you can consolidate your mortgage into a low-interest rate and use the money you saved to pay off bad debt. Use the money to pay off credit card debt, medical, student loans etc. If you could pay all those off and save between $500 – $1,000 a month it makes sense.
now, what if you took that thousand dollars a month made believe you didn’t save a penny of it and you paid your principal down every single month. How many years would you save on your mortgage? That might even be a better deal for you.