It was their third refi since buying their house in 1995 and, this time, they hired a professional adviser.
Since much of their credit card debt went toward home repairs, he convinced them to take out an extra ,000 to stash away as an emergency fund. While the couple's mortgage payment increased by 5 (they were hoping to reduce their rate from 6 1/8 to 5 percent, but their broker locked in late), they netted 0 in monthly savings.
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"It's extremely helpful to have a good adviser," Gayle says.
" Both couples timed their refinancing well, taking advantage of this year's low rates and lending flexibility.
Not only are they spending hundreds less each month, they turned car and credit card payments into a tax-deductible home loan. "This is the beginning of their effort to get rid of debt, not the end," says Todd Huettner, president of Huettner Capital, a mortgage brokerage specializing in debt consolidation.
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