Want More Spending Money? Who doesn’t?!
Are you thinking of lowering your monthly expenses to save money each month and increase your spending money? If so then a home refinance may be a great way to achieve that goal!
If you are a homeowner in Idaho then you are likely sitting on more home equity than you realize. In our area home values have been increasing rapidly and, according to predictions, they will continue to increase in the coming years. Because of this now may be the right time to refinance and potentially save hundreds of dollars each month.
Refinancing your home may save you money in several different ways. Here are some examples:
- Potentially lower your interest rage. Interest rates are lower than they have been in several years. Because of this, you may be able to lower your current interest rate and decrease your monthly mortgage payment significantly.
Increase your cash flow and pay off debt by doing a cash-out refinance. By utilizing the equity in your home you could pay off high interest credit cards, auto loans, student loans or personal loans. Due to low mortgage interest rates now is a great time to pull equity from your home to pay off high interest debts. By paying off your other monthly debts you could potentially be left with only a mortgage payment! This could increase your ability to set aside money for savings and retirement, go on that vacation you’ve been dreaming of or even making some home improvements without having to put those expenses on high interest credit cards.
Eliminate monthly mortgage insurance. Because of the equity that you potentially have in your home then you may be able to reduce your mortgage payment by getting rid of your monthly mortgage insurance. If you have 20% equity in your home and want to do a conventional home loan then you can refinance and have the monthly mortgage insurance premium taken off of your monthly payment amount. This could reduce your monthly payment by up to several hundred dollars per month.*
Reduce your loan term to pay off your home faster. If you could pay off your mortgage in 15 or 20 years instead of 30 think of the money you could put away for retirement once your mortgage is paid off! You would also save quite a bit of money in interest by reducing your loan term. Paying your home off faster can reduce your future monthly expenses and help you enjoy life down the road.
Fund large purchases. Instead of taking out a loan to make a large purchase such as a vehicle, boat, vacation or even your child’s college tuition you could refinance your home loan and pull out the money you need to make such a large purchase. Typically mortgage interest rates are much lower than interest rates on automobiles, recreational vehicles, student loans, and personal loans which could save you money on large purchases and help you increase your monthly spending money.
Call us today to learn how to put more money in your pockets!
*(Monthly savings is determined by your current monthly mortgage insurance payment).
