REFINANCING YOUR EXISTING HOME

LOWER YOUR PAYMENT

This is one of the primary reasons to refinance.  Lowering your interest rate by even ΒΌ% can save you thousands of dollars a year.  The lower rate means less interest charged by lender each month.  Additional savings come from resetting the loan to another 30 year timeline.  This means even if the rate is not lower monthly savings can be realized.


SHORTEN YOUR TERM

Maybe your goal is to not lower the payment but rather pay off the home sooner and pay thousands less in interest over the life of the loan.  If your goal is to live in home mortgage free a lender will give you a lower interest rate to pay it off sooner.  The lower rate and shorter term compound the savings.  Switching from a 30 Year Fixed to a 15 Year Fixed can save you about 42% of total cash outlaid.


DEBT CONSOLIDATION

Significant monthly savings can come from increasing the amount of your current home loan if proceeds are used to pay down other short term or higher interest rate debt.  Typically the mortgage rate on your home is going to be less that any interest rate you would have on a credit card, auto loan or student loan.  Plus the interest on a home loan is tax deductible while the others are not.  Talk to us to run the scenario for you to see how much the monthly savings could be.


HOME IMPROVEMENT

Are you thinking about improving the house you already own?  Many times spending money on upgrading a kitchen or bath or adding space can greatly improve the value of your home.  Accessing the equity you have in your home via a Home Equity Line of Credit or cash-out first mortgage is one of the least expensive ways to access cash.  Again, the interest rate will be one of the lowest you can get and the interest is tax deductible.  Once complete the goal is to have a home that is more valuable than before you started.  Therefore any equity you may have lost by taking cash-out is offset by the increased value of the finished home.