Refinancing AdviceTo Pay Off House

by Patricia
(Florida, USA)

Ask Kate: Refinancing Advice To Pay Off House Kate, I was talking to a friend who used a credit card at 3.9 percent to pay off his house. I owe $92,000. My home is financed on a 6 percent, interest only, 30 year fixed rate mortgage. The interest only loan is about 5 years old.

I do not want to refinance as I have no cash and refinancing several times kept increasing my mortgage balance.

I have paid off my credit cards and truck. I want to apply those payments toward reducing the principle of my interest only mortgage. But was thinking if I can ever find a credit card offering 3.9 percent I'd be interested to try to use it to pay off my mortgage.

What do you think? Do you have refinancing advice for me? Patricia

Kate Answers: Refinancing Advice To Pay Off House

Hi Patricia, Congratulations for paying off your truck and credit cards.

By using those previous amounts to pay off your mortgage faster, it sounds like you are on a path to eventually owning your home free and clear one day.

More than likely you need to consult an accountant for advice regarding credit cards to pay off a mortgage. Mortgage interest is commonly tax deductible but not usually interest from a credit card.

So to know if this is an advantage or not, talk with a tax professional.

I would also recommend reading the fine print very carefully because credit cards are not regulated with the same homeowner protections as mortgages.

Best Wishes,

Finding HELP You Need For Refinancing

Refinancing Advice - Your opportunity to get down to earth refinance nuts and bolts from a mortgage insider.

Having trouble refinancing your mortgage due to fallen property values? Go to Special Edition Making Home Affordable Options, a Super Kate overview of available help.

Announcing Kate's Mortgage Information Planner - To save money, get your ducks in a row first.

Are you a homeowner trying to decide if Mortgage Refi is worth the cost?

How To Compare Mortgages - Interest rate, loan amounts, closing costs, cash out, length of term, monthly payments, yes it is enough to make anyone want to toss up their hands.

Real Estate Investor Loans - Three options for investors sandwiched between negative cash flow and plummeting real estate values.

Surprise, it's a barn! Is a Certificate Of Occupancy necessary for your home mortgage refinance?

Refinance With Cash Out - Where is my loan approval?

Save Money Using My Special Refinance Formula "I am a great believer in luck, and I find the harder I work that the more of it I have." --Stephen Leacock

Fresh Refinance Ideas - There are reasons why and why not to refinance promoted by the media, mortgage lenders and financial gurus. The fact is, only you can decide.

What can you do when Refinancing With Bad Credit threatens to derail your dreams?

You don't know it yet but the secrets I am about to share with you have never been explained anywhere else. Don't miss Ask Kate's Secrets To Refinancing!

Low Mortgage Payments For Home Owners - Before you decide on a company, learn how to ask questions and qualify your lender.

Don't be distracted by refinancing lingo. You just need my 10 best kept secrets to Low Mortgage Payments.

Ask Kate About Refinancing - Ask a question to get an answer from Kate.

Refi Stories - A collection of refinancing stories told to Kate by current homeowners.

Refi Ask and Answers - A collection of refinancing questions, each with a individual answer from Kate.

Return from Refinancing Advice To Pay Off House to Get Your Best Mortgage Rate

The information you obtain at this site is not, nor is it intended to be, a substitute for financial, real estate or legal advice. You should consult an attorney, accountant, lender or real estate agent, as applicable, for advice regarding your individual situation. Comments and opinions found here are not necessarily those of Get-Your-Best-Mortgage-Rate.com