Consolidating bills into mortgage
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At today’s interest rates, school loans have an interest rate about 3 percent above that of a typical mortgage.
Here are the steps you should take to determine the best financial path to take in this situation.
For example, mortgages and car loans generally have rates that are between 2 percent and 4 percent, and less than 7 percent, respectively.
Overall, these are not a good bet if interest rates are historically low and likely to rise, or if there is a general inflationary environment, meaning higher than four-five percent a year.
Currently, a fixed-rate mortgage at, say, 3.5 percent or 3.75 percent is probably a better bet than an ARM because today’s interest rates are historically low. You can afford a ,000 mortgage to clear your debt and keep a little extra “change” according to the initial scenario.