Refinance

BENEFITS TO REFINANCING YOUR HOME

There are numerous advantages to refinancing your home to use your greatest asset to supplement your family take care of ones future.

Reasons to refinance?

As simple as to drop ones Interest rate and recast the loan for a more comfortable payment or a combination of not only dropping your rate but lowering the term to strive to pay off your loan quicker.

These would be considered “Rate / Term “ refinancing ( no cash out , simple loan recast )

A cashout refinance can be beneficial in using the equity in your property to do things such as: upgrade / remodel your home (this will also enhance your value ) , debt consolidation.

For example, lets say you have $10K in credit card debt , 5K in medical bills and you want to invest in an opportunity for 20K that will give you a return of 7% annually.

The min payments on a 10K credit card at an average rate of 23% will run just over $200.00 a month ( at this min payment it will take over 10 years to pay off this debt alone ) and your medical bills run $100.00 a month. This is $300.00 a month in payments just to cover whats owed and you haven’t invested in that opportunity.

To refinance and recast your home mortgage 35K Cash out pays off your 15K in debts AND covers your investment opportunity. The 35K in a mortgage is approx. $135.00 / mo.

Plus your investment is attaining in this example 7% annually ( which is 117.00 a month ) so this refinance alone is only costing you $22.00 a month. But that’s not all, there is your tax benefits annually to write off your interest on your mortgage ( one of the largest tax write offs in a family’s return ) . So the benefits to refinance enhances ones investment and eases your debt load at the same time.

Then with the option to shorten your term this can accelerate your investment and equity position on your residence which depending on ones abilities an comfort level are benefits all around.