Should I Refinance My Mortgage to Achieve My Other Financial Goals?
There’s a rising trend among Las Vegas homeowners to refinance their mortgages or remortgage homes that are already paid off. These decisions are due in large part to the improving economy and the overall interest rates which remain low. The reasons why people are making these decisions are diverse, but often defy expectations. Homeowners don’t always refinance in order to get a lower interest rate on an existing mortgage or to pay off their mortgage faster. Here’s a look at whether refinancing your mortgage can help you achieve other financial goals.
Keeping up with today’s level of bills can be challenging. High interest rates on credit cards, unexpected medical and repair bills, and the day to day costs of living pile up. Suddenly, many families find every spare cent they have going toward debt reduction. But in some cases, refinancing your mortgage allows you to consolidate your bills into one payment that’s easier to track and significantly lower than separate payments. Lower payments allow these homeowners to pay off total debt more quickly, save for emergencies, and focus on other goals like paying for college and saving for retirement.
Eliminate a home equity loan or a second mortgage:
Perhaps you took out a home equity loan to enable you to complete a home construction project. Many equity loans or lines of credit have variable rates. Whether you’re locked into a higher rate or simply want to consolidate payments each month for easier management, refinancing your primary mortgage can allow you to eliminate a home equity loan. In a related scenario, today’s low rates are making it possible to consolidate a first and second mortgage into one
Buy another property:
At first glance, it’s often inconceivable that homeowners with a paid off mortgage would remortgage their primary property. But some often do. One of the most common reasons is the buy a second property. Often buyers are hoping to move quickly on a property that’s harder to obtain financing for. Remortgaging your primary house can be one way to fund an investment property, a cross-country move, or a vacation home.
Address family issues:
Unexpected situations can arise that impact your living situation. Frequently this involves divorce. Often, one partner wishes to retain the home but needs help doing so. They might want a lower monthly payment or to extract equity from the home in order to buy out their partner. Addressing family issues is a common factor that drives owners to consider a refinance.
Are you a homeowner in the greater Las Vegas area that’s contemplating refinancing your mortgage? Contact Sydnee Johnson today to arrange for a personalized consultation and to discuss if now is the right time for you to refinance.