Getting a mortgage refinance can be quite beneficial if your aim is to use it to pay off your current mortgage and switching to one with lower interest rates. It cannot only save you money but also allow you to pay off your mortgage in a much shorter time period or getting more flexible mortgage terms.

However, there are times when acquiring a mortgage refinance can turn out to be an unstable and slippery slope, taking you to a bottom-less hole of never-ending debts.

The reason why home mortgage refinancing can turn into a nightmare is the purpose of getting it. While it is beneficial to get a refinance to pay off the current mortgage, doing it to handle other bigger expenses can lead you into trouble. A number of people opt for mortgage refinancing so that they can pay off other debts or use the money on other personal expenses. This can leave them stranded with two different mortgages, going on for a long time. In order to pay off these mortgages every month, an individual would have to spend a huge portion of their income towards them.

One of the many reasons why people get a mortgage refinance is to cover home remodeling expenses, arguing that it would eventually add value to their house. While it might be true, it is still not worth losing your house if you fail to pay back the mortgage on time. Another major reason that often pushes people toward refinancing is to cover the educational expenses of their children. This is a situation that can be prevented if you save for it ahead of time, instead of getting a mortgage and paying additional interest on it.

Another very common reason that people have for getting a Houston refinance home mortgage is to pay off their consolidated debts. While it might seem beneficial to you to pay off high-interest debt with low-interest mortgages, it can lead you into an even deeper debt trap. Once you get rid of your debt, you start spending with abandon again. In a few days, all your debts might be accumulated again to a similar level while you would have one more mortgage to pay, making the situation even worse than before!