Many people prioritize paying off their mortgage, but have you considered other high-interest debts?

Suppose you have a car loan at 7% interest, a line of credit at 9%, and credit cards at 19%. You also have a mortgage. Since mortgage rates today range between 3.94% and 5.95%*, you can use the equity in your home to pay off your most expensive debts.

To maintain your financial security without extending the term of your mortgage, avoid putting your current consumer debts (credit card, car loan, line of credit, etc.) on such a long amortization. However, you can opt for a multi-segment mortgage. This way, you can pay off part of your loan in 2 or 3 years. You can keep your original mortgage (with the same amortization), but add a portion with a shorter amortization. You will have paid less for your debts while having all your payments concentrated in one place.

To learn more about the multi-segment mortgage, feel free to contact us. Share this article with anyone you think it might help!