5 Ways Home Refinancing Now Improves Your Financial Picture Immediately...

100% of the time when clients call us they say I’m interested in refinancing. I’ve heard mortgage rates are really low. How do I start? I would like to lower my mortgage rate.

Clients know one benefit–lower the mortgage rate so cash flow can improve. Actually, there are a lot of other reasons for refinancing your home.

Here are 5 other ways your financial picture improves when you refinance:

1. Forced savings account

You are increasing the amount of principal being paid monthly while at the same time you are reducing your total mortgage interest monthly. Paying more principal monthly helps you pay down your home faster and in the future if and when you sell you will have more money than if you would have never refinanced. 

2. Skip a mortgage payment

You pay prepaid interest within your closing costs at time of closing which is like a pro rated mortgage payment for the first month. After closing, your first mortgage payment isn’t due right away. It’s almost like skipping a mortgage payment. 

3. Eliminate monthly liabilities

If you use equity from your home as part of the refinance to consolidate some debt. Your cash flow immediately improves. 

4. Escrow refund

Whatever monies are currently being held in escrow by your existing lender will be refunded once the current mortgage balance is paid off by completing a refinance transaction. 

5. Affordable home improvement

If you’re looking to do some home remodeling or improvements using some of your existing equity makes the home project more affordable because of the lower rate and lower interest. 

 

Everyone’s situation and reason for refinancing is different. There is no right or wrong reason. Refinancing into a great mortgage could help you accomplish your life goals while improving your overall financial picture.

If you’re interested in a few other ways refinancing can benefit you. Let me know down below. I would love to help you, lead you and guide you during an environment where mortgage rates are at historic lows.

Thank you for taking the time to read my latest real estate and mortgage report.

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