Consolidation works best when your ultimate goal is to become debt-free.
This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.
Once the introductory period expires, the rate you’ll see on a balance transfer card is usually higher than on a personal loan.
You’ll also have to avoid the temptation of making further charges during that time. Fixed payments ensure that you’ll pay off debt on a set schedule.
Many homeowners take cash out to pay off high-interest debt or make home improvements.
Use our refinance calculator to see if you have enough equity to reach your financial goal.
The interest rate depends on your credit profile, and it usually doesn’t change during the life of the loan.