If financial freedom is a priority for the all-American Dreamer, you might want to read this!

If financial freedom is a priority for the all-American Dreamer, you might want to read this!

Annette Bui| Updated May 11, 2020 | Mortgage Programs 101

If getting to the bottom of your budget is on your to do list, now is the time get your savings road-map in order. You might just find that you get a much bigger savings on both time and money by refinancing your home mortgage. A refinance can save you money to create additional cash flow and then save you thousands in interest over the life of the loan. There is an abundance of benefits for refinancing your home loan such as lifetime savings on interest.

Reduce interest rate

The top reason is to take advantage of a lower interest rate. The savings on an interest rate reduction of 0.5% or more can create a substantial savings that you can allocate elsewhere from monthly expenditures, an upcoming tuition or car expense.

If your credit score has improved since buying your home, then that hard work might just pay off and you may find yourself qualified for a more attractive interest rate. Furthermore, your professional progress has resulted in a significantly higher income, you may now qualify for a lower interest rate, especially if you have paid down debt in the meantime.

Pay off faster

If, like most people, you currently have a mortgage with a 30-year fixed rate, you may want to refinance in order to take advantage of the benefits of a shorter loan term. While your monthly payment may be higher, the advantage of paying off your mortgage years earlier than you had planned offers a powerful incentive for refinancing.

This is especially helpful if an early retirement is one of your goals, since eliminating your monthly mortgage payment years earlier can fast track that plan. So, whether it’s more time to watch Maury or a beach shack in Maui, those retirement goals could be attained sooner than you think. 

Leverage your home equity

If you have a substantial amount of debt – from student loans to medical bills – you may want to tap into your equity when you refinance your home loan. This could enable you to consolidate other existing high interest debt, thus boosting your credit scores, creating an increase in your cash flow as well as lower your overall month to month recurring debts. Another option, you can use that extra cash for home upgrades to further enhance your value.

If you have significantly improved your home since you purchased it, you may have even more equity than you expected, offering you the opportunity to refinance at a higher loan amount.

Why Choose Annette for your next Refinance?

Refinancing is all about finding the very best option so that you can maximize your savings. That’s why the loan process with Annette is ideal. I can match you with the lender that’s best suited to your current scenario with two plans tailor-designed for your personal needs:

• Rate & Term: You can optimize your interest rate and the timeline of the loan in order to save you the most money, both on your monthly payment and over the life of the loan.
• Cash Out: This allows you to maximize the equity in your home and extract it for other financial needs and goals.

Want to get started? You can begin the process online or talk to one of our loan experts for more information and to weigh the option that’s right for you. Let’s get you on track to crush those financial resolutions!