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There are many ways to save money. You could try to reduce your interest rates on unsecured loans, or lines of credit by rolling them into a second mortgage, or combining them with an existing mortgage. Secured loans such as mortgages normally save you money by having lower interest rates, but they may cost more to close at the end of the loan term.
If you go for a cash out refinance deal you may get yourself some spare cash to meet your immediate financial needs, and save money by getting a cheaper loan. If your credit rating or status is better now than it was when you originally took out a loan, then you are probably going to be able to get a loan at a lower interest rate than before. For example you may have bought a car using an auto loan. The car may still be a dream but the loan could be expensive. Refinancing the auto loan may make it more affordable and could save you money.
You may wish to refinance your mortgage. If done properly you may save money. However, when refinancing your mortgage you must match your loan to your financial goals. Some mortgages offer a lower rate than others, but you are tied into the loan and must pay a fee if you redeem early. This type of mortgage should be avoided if you are likely to move, and therefore redeem the mortgage, in the next couple of years. Likewise, loans that have a large up front fee to lock you into a low interest rate should also be avoided, unless you are going to keep the loan for a long period of time. With a big up front fee you need plenty of time for the savings you make on having a low interest rate to balance out the fee. If you are going to have the loan for a short time, then a better strategy is to look for a low interest rate and a small or no initial fee. Keeping closing costs to a minimum will also help save money.
As an alternative to rolling your credit line into a mortgage, you could try to shorten the term of the loan. This may mean your monthly payments will increase, but the amount of interest you pay overall will be less and you will also normally qualify for a lower interest rate.
When looking to save money, you must consider what loans you have, how long is left on each one, how much you can afford to pay, how long you propose keeping the loan and what the interest rate is. You should aim to get the lowest interest rate possible to make the loan as cheap as possible. However, if you have to pay a fee to get the low interest rate then you need to consider whether you will keep the loan long enough to make sufficient savings to offset the fee. You should also look at any redemption or closing fees, particularly in the case of mortgages. These can make what appears t to be a cheap loan quite expensive. If you can afford to pay a bit more each month, then you can shorten your loan period and reduce costs that way. To sum up, if you want to save money you need to get a number of different quotes for loans and consider all the costs involved. Getting a cheaper interest rate is a great way of saving money, but not the only way and you may not save anything if the costs outweigh the savings.
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