If you're looking for a way to get rid of your credit card debt, a cash-out refinance could be the answer. This type of loan allows you to take advantage of the equity in your home, or the difference between what your home is worth and what you owe on it. It can be easy to fall into debt if you're having trouble making your monthly mortgage payments, and a rate and term refinance can help you divert more money towards your debt without changing your principal balance on your mortgage. This can help you better manage your finances and consolidate your debts.
Unlike a refinance, a home equity loan is not included in your mortgage. This means that you are taking on additional debt in addition to the mortgage. So, you'll need to make your monthly mortgage payment, as well as pay your home equity loan.
