People are always asking me for creative ways to pay of their bills. One way I have not mentioned is to refinance your mortgage and use the added value of your house to pay off the bills you may owe. These are called a number of things in the banking and loan industry. One common lable is a "Combo Loan" or "Home Refinance with Bill Pay."

In brief, you can take a home that has increased in value over the years, refinance the mortgage to a lower interest rate --- and use the increased appraised value of your home to pay off bills. The Financing Company pays off the old mortgage, and also issues checks to your designated creditors to pay them off. Some people also get cash back too, but I don't recommend this. Also the fincne company is leary of doing this. the agreement to the "bill pay" feature is that they know they have put you in a better financial postion and you will be ABLE TO PAY THEM!

Example #1:
A frugal couple had bought a "Fix-Up" Home seven years before. They did many repairs themselves over the years, including removing all the old cracked peeling wallpaper in the three story house, re-roofing both porches, repaintiing the whole interior, and adding all new appliances. It was a much nicer home that when they first bought it. When they went to refinance the appraiser found the home worth $20,000 dollars more than when they had purchased it. The refinanced the whole new value of the house and took the extra money to pay off a business laon and credit card bills the husband had incrued opening his own business. This saved them over five hundred dollars a month in payment and even more in future interest they would have paid.

Example #2:
Another couple had catastrophic medical bills when the husband became ill. They refinanced up to the amount their much improved home now had on the market. It paid many expenses not covered by insurance.This saved their home and saved them from creditor harrassment.

If you are not sure that your home has improved in market value you can get a multiple free loan estimate, and use a local house value calculator at several sites:

LowerMyBills.com

Americas Lending Partners

Savings.com

All these site will get you multiple free loan quotes and have home value calculators, and morgage calculators to use for free.

Happy Refinancing!