Gas prices. Inflation rates. Interest rates. Even the most financially comfortable are now becoming concerned by the current social and economic climate. Plans are being put on hold yet again, in fear that it might be too risky to make any large purchases or chase big goals.
Something that you may not be aware of is that you do have options. You can help make your money and your equity work for you. It’s a simple as ignoring the news headlines and speaking to a professional.
Many homeowners are leaning on refinancing to take advantage of their home’s equity to help increase cashflow, to consolidate debt, or for renovations, investments, and future purchases. It can provide some much-needed relief, and even give you access to opportunities to achieve goals that you may have believed were otherwise impossible.
Here Are 3 Key Benefits You Can Take Advantage Of By Refinancing Your Home:
Hot on the heels of a global pandemic that was filled with lockdowns and job cuts, it seems like so many people cannot catch a break between the rising gas prices, cost of groceries, and the overall cost-of-living. With interest rates expected to increase, this can also mean higher monthly costs for your mortgage. It’s enough to cause everyone to be concerned, and people might be reconsidering plans and goals in fear that they might be too strapped for cash. A Mortgage Professional can help guide you through the refinance process. You can possibly decrease your monthly payments, giving you a bit more wiggle room in your monthly cashflow.
After a turbulent few years, extra debt can really start to weigh you down. The majority of consumer debts such as credit cards, lines of credit, student loans, or vehicle loans carry a much higher interest rate than that of a mortgage. Debt Consolidation through a refinance can provide a bit of breathing room when it comes to debt, and could allow you to regain control of your finances, or better them.
Common consumer debts such as Credit cards and Lines of Credit tend to rack up and snowball due to high interest rates. If you have debt spread out across multiple credit cards, lines of credits, car loans, etc., it can feel overwhelming simply managing all the different payments and their associated deadlines. Not to mention, if you are already strapped for cash, and not able to pay down your balances owed, the interest continues to pile on leading to even more debt.
By refinancing your home, you can consolidate those extra debts into a new mortgage for one easy payment. This also offers the potential for monthly cashflow enhancements, significant interest savings, and most importantly, stress relief.
Refinancing your home can allow you to draw out equity sitting in your property, and provide you with funds to achieve your goals. Let’s say there is an expensive home renovation that you have been hoping to get started on, such as a new deck, a pool, or a home extension. Drawing the equity out of your home can allow you to accomplish these renovations, which in turn can further increase your home’s value, all the while making your home a more enjoyable place to live. Or perhaps, there is an investment opportunity that comes up, such as a potential rental property or otherwise, that you want to jump on but don’t have the funds, or maybe you want to restructure your loan today to set you up for a purchase in the future. By tapping into your home’s equity, you could make these opportunities a reality. There are a ton of solutions when it comes to refinancing
One of the greatest benefits of refinancing your home is that it allows you to utilize equity that would otherwise sit in the home unused. If that equity goes unused, there is a good chance that you and your family are missing out on having some extra breathing room during challenging times or other financial opportunities. Whether it’s funding an emergency expense, funding your child’s education, or funding an investment, refinancing is a great way to take advantage of the equity you have earned as a homeowner.
Did you know…
Our Mortgage Team also specializes in refinancing? Our team of licensed mortgage experts will help you navigate these uncertain times and will be happy to help you not only determine the best course of action for you and your family, but they also have the tools to make your mortgage goals happen!
We provide unbiased advice, bringing a solutions-focused approach to your financial needs and mortgage questions. You have the assurance that your Faris Team Mortgage Professional will go full out for you®.
Click here to book an appointment with one of our Licensed Mortgage Professionals and check out our Mortgage page to learn more about the services that we offer!