Many of us have been raised to believe that debt is bad, though very few of us can entirely avoid borrowing money . Like most things, debt can be a help or a hindrance to your goals, depending on how you use it. The way you manage debt, though, can help you create wealth. Refinancing high-interest debt can reduce monthly payments, freeing up cash to invest, while borrowing against your securities for tax payments or major purchases allows you to remain invested, increase your budget flexibility, and avoid potential tax events.
Debt can be an effective money-management tool under current market conditions.
At the same time, the market has enjoyed an eight-year bull run. Historically, low interest rates have created a frenzy of mortgage refinancing. Yet even as interest rates rise, there are compelling reasons to consider a mortgage refinance. A mortgage can be the lowest-cost source for funds available to individuals. This type of refinance frees the equity in your home for other investments that may appreciate at a higher rate than the value of your home.