Refinance
1. Debt Consolidation: this is when you take out one loan to pay off many others. The reason people do this is to get a lower interest rate, lock down a fixed rate, or for the convenience of only having to pay, and maintain one loan. Debt consolidation can be a secured loan against an asset that serves as collateral, which in this case would be a home. Corvus Financial is a nationwide mortgage company head quartered in Utah that specializes in debt consolidation, and can discount the amount of the loan because when a person is in danger of filing for bankruptcy we can buy the loan at a discount. Debt consolidation is often advisable when buried deep in credit card debt.
Most people only pay the minimum required and will never get their credit cards payed off. Through time the interest rates will keep rising and so will your balance even if you have been paying on it for years. When you consolidate all your debt at a lower rate, you have more money to work with monthly and have the good feeling of being able to actually pay down your debt.
2. Home Improvement—Have you been wanting that oasis in the backyard? How about that new deck? Or maybe your kids have left and you want to knock out that wall and make a bigger master bedroom getaway. Whatever home improvement you may be wanting to do, getting access to the equity in your home through a HELOC is the easiest way to achieve these improvements. Getting a HELOC for home improvement will only add value to your home and if you do ever decide to sell the money you took out for the improvement most likely will be made up when you sell.
3. Fixed Rate—are you in an interest only loan and worried about rising rates? Refinancing to a 30 year fixed rate while the rates are low could take some stress away and help you sleep at night again! The economy is starting to boom, and with that interest rates are going to do only one thing—climb. Get locked in now while interest rates are at some of the lowest levels they have been in years.
4. Lower Payment—if you have not refinanced your house in the last 10 years you may be surprised at how low the refi-rates have got. You could lower your monthly payment by hundreds and save money in the long term of your loan. You could use that free money to eliminate credit card debt, of take a vacation you have been wanting to take.
4. Be an investor—If you refinance a house and take our equity (if you have a substantial amount) you can use the money and invest in things such as the stock market, property, or land. A housing boom is still going on, and it’s never a bad thing to invest in a house. Having the money freed up to take advantage of certain situations could make all the difference for your future and where you want to be.
