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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (5601)	9/26/2002 10:49:56 AM
From: GraceZ	Read Replies (2) \| Respond to of 306849

Not exactly. Suppose you have a person who is paying close to the minimum on 30k of consumer debt. They have a mortgage 2 points above the going rate with 65% equity in their house with 15 years left. They can refi, roll in the consumer debt to the mortgage and still have the same term, same mortgage payment. While their home equity is lowered, their total debt stays exactly the same but they no longer have the consumer debt payments. This essentially improves their cash flow by 500-700/month.