Time to Refi?

If you’ve been feeling weighed down by credit card balances, student loans, or other high-interest debt, you’re not alone. Refinancing your mortgage can be a powerful strategy to help pay off debt faster and gain financial peace of mind.What is Refinancing?

Refinancing simply means replacing your existing mortgage with a new one - often with a different interest rate, loan term, or structure. Depending on your goals, a refinance can lower your monthly payments, shorten your loan term, or allow you to tap into your home’s equity.

Using a Refinance to Consolidate Debt

One of the most common ways refinancing helps with debt repayment is through a cash-out refinance. This option allows you to borrow against the equity you’ve built in your home. You receive a lump sum of cash, which you can use to pay off high-interest debt such as credit cards or personal loans. Since mortgage rates are typically much lower than credit card rates, this can dramatically reduce your interest costs over time.

How It Helps You Pay Off Debt Faster

By consolidating multiple high-interest debts into one lower-interest mortgage payment, you could:

• Save on interest: Less of your money goes toward interest each month, allowing you to make real progress on your principal balance.
• Simplify your finances: Instead of juggling several payments, you’ll have one predictable monthly payment.
• Free up cash flow: Lower overall payments can make it easier to stay on track and build long-term financial stability.

For some homeowners, refinancing into a shorter loan term - such as a 15-year mortgage - can also help pay off their home (and other debts) faster, while saving thousands in interest over the life of the loan.

When Refinancing Makes Sense

Refinancing may be a smart move if:

• You have built significant equity in your home.
• Interest rates are lower than when you first purchased your home.
• You have high-interest debt you’d like to consolidate.
• You plan to stay in your home long enough to benefit from the refinance.

Every homeowner’s situation is unique, which is why personalized guidance is key.

Ready to Explore Your Options?

If you’re curious about whether refinancing could help you pay off debt faster, Abacus Financial can walk you through your options and help you decide what’s best for your goals. Schedule a free 30-minute consultation today and take the first step toward a stronger financial future.