If you’ve been sitting on the financial sidelines the past several years, chances are you’ve thought about refinancing your existing mortgage.
After all, refinancing has something to offer to virtually everyone. From first-time Millennials, to family-raising Boomers, to retirees, refinancing offers a plethora of solutions to the financial needs of homeowners throughout their lives.
Regardless of your station and place in life, most American homeowners contemplate- or need- the equity in their homes to manage their financial needs.
To these ends, let’s explore some of the reasons YOU may have to pull that trigger.
It’s a new year. With the Holiday shopping season behind you, and tax season just ahead, it’s time to face the financial music. A symphony of sounds, no doubt. Credit card bills may be higher early on in a new year. It’s a good time for some financial foresight and catch-up. Refinancing is a tool you can use to ease the ebb and flow of normal year-to-year living expenses.
Debt consolidation is an easy way to decrease your monthly expenses, while staying current with your obligations. With mortgage rates -still at historic lows, it may very well be an opportune time to consolidate debt and clear the path for the new year.
CONVERT A VARIABLE RATE MORTGAGE TO A FIXED-RATE:
One of the simplest ways to reduce your monthly expenses is to seek a fixed rate mortgage to replace a current variable rate.
Perhaps you’ve reached the end of your three-, five- or seven-year variable rate schedule. Refinancing to a fixed-rate mortgage at four or even five percent may save you hundreds in monthly interest, and give you the opportunity to lock-in a fixed rate for many years.
While converting from a variable to fixed rate mortgage, now may be the opportune time to access some of the equity in your home. Often, in cash-out refinancing, homeowners can still have a lower payment than at present, even with cashing out some equity.
Have you been putting off remodeling your home, a kitchen or bathroom? Has it been years since you took a family vacation? Are you considering purchasing a second home or vacation home? Remodeling adds value to your home. A second or vacation home gives you an added asset that enhances your net worth for the future. In using your home’s equity for a down payment or home remodeling, the interest rate paid on a refi loan with a reputable mortgage company such as iServe Residential Lending is often less than the rate you’re paying with another lending or financial institution including the cash out.
BEGIN SAVING FOR YOUR CHILD’S EDUCATION:
Refinancing, in any and all of the scenarios outlined above, allows you to save on monthly expenses, lowering your out-of-pocket payments for mortgages, credit cards and other obligations, while addressing your family’s needs, at the time you need them.
With the costs of private college skyrocketing, now may be the perfect time to refinance, consolidate and lower your monthly expenses to allow you to set aside money and begin saving for your child’s education as well. Your financial advisor has many options to put money aside each month, often tax-free or tax-deferred, to help you meet these important financial goals.
There’s no better time than the present.
Whether you’re in need to simply lower your monthly credit payments, invest, cash out for family needs and goals or begin planning for major expenses down the road, refinancing allows you the freedom to achieve the many goals you and your family have- today, and for the life of your family.
This is a guest post from Michael Macari . Michael Macari is an award-winning writer and producer. He currently serves as Chief Communications Officer for National Asset Direct. He lives in Stamford with his wife, five children and two grandchildren. For more information on iServe Residential Lending’s refi solutions, visit https://iservelending.com/pages/refinance or to speak with a loan representative directly, at www.iservelending.com/officers .