CONSIDER THIS: WHEN TO REFINANCE

Refinancing your mortgage is something most homeowners consider at least once throughout the lifespan of their home loan. It allows you to pay off your previous loan by applying for a new one that has better financial advantages. While there are many good reasons to refinance, here are five common ones.

• Scoring a lower interest rate. The number one reason homeowners decide to refinance is to secure a lower interest rate on their mortgage. Not only does this save you money in the long run and decrease your monthly payment, but you can start building equity in your home sooner.
• Using an improved credit score. Even if interest rates have not dropped in the market, if you’ve improved your credit score over the last few years, you may be able to reduce your mortgage rate.
• Shortening the loan’s term. If interest rates are decreasing, there is a chance you may be able to get a shorter loan term with little to no change in your monthly payment, allowing you to pay off your loan sooner.
• Switching from an adjustable-rate to a fixed rate. If you chose an adjustable-rate mortgage with great introductory rates when you initially financed your home, that rate may increase significantly over the years. By switching to a fixed rate while interest rates are low, you can protect yourself from future increases.
• Cashing out home equity. If there is a big purchase or payment on the horizon, such as funding a wedding or going back to school, your best option may be to use the equity you’ve built in your home to borrow money at a lower cost.

I have good lenders that I can refer you to if you are thinking of refinancing your home.  http://turnkeyrealtyco.com  

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Remodeling A Home

Have you been dreaming of a remodeled home?  Is your kitchen outdated, your landscaping overgrown, or unusable basement space?  The first thing to consider is how you are going to finance it.  Here are the most common options to make your dreams become a reality.

CASH

Paying cash is the most straightforward option, just save enough money until you have enough for the expense.  This will limit spending outside your budget; however, it can also extend your timeline.

MORTGAGE REFINANCE

If you've been making payments on your home for a few years and your interest rate is higher than current market rates, you may be eligible for a mortgage refinance, reducing your payments and freeing up some of your money.

CASH OUT-REFINANCE

You can tap into your home equity and borrow up to 80% of your home's value to pay off your current mortgage plus take out more cash to cover the renovations.  This option is encouraged only when you are making improvements that will increase the value of your home, as it can add a lot of interest and fees.  

HOME EQUITY

Getting a home equity line of credit allows you to borrow money against the value of your home.  You receive up to 80% of the value of your home, minus the amount of your loan.

RETIREMENT FUNDS

Homeowners can consider pulling money from a 401k or IRA account, even though they aren't specifically meant to cover a home renovation.  This option might incur additional penalties or tax payments, but maybe worth it when making improvements that will benefit them financially in the long run.  

If remodeling is not what you want to do and buying a new home or a resale home is better for you then give me a call.  I'm happy to help you find the home that fits your lifestyle and dreams.