Refinance Your Financial Freedom
For those who are watching the economic crisis from an easy chair, it may seem like a great choice to sit back and stay out of it. For those who have a bit more financial savvy, taking advantage of the opportunities offered by the financial crisis is a whole other way of looking at things.
One of the opportunities available is to watch the interest rates and take advantage of the opportunity to refinance your home. For most of us, this is a viable opportunity, as our 30 year fixed may be somewhere around six percent or even higher. The chance to save money with a lower interest rate is huge.
Well, why bother? is what some people would say. After all, you have your mortgage payment, you can afford it and you pay it. Case closed. The tiny amount of money you could save really can’t be worth going through all that extra paperwork.
Not true. There are two significant ways doing the work to refinance your home can save you and even make you more money. By reducing your fixed percentage rate, every month you could be putting several hundred dollars a year into a. your pocket or b. your principal.
If you take advantage of the opportunity to refinance your home and put that money into your pocket, even getting one point knocked off of your percentage can make a big difference to your pocketbook. For example, if you are paying 6.5% on a $100,000 loan, your monthly payment is around $550.
If you knock that down to 5.5% on a $100,000 loan, you’re looking at a fifty dollar decrease in your mortgage per month – that’s six hundred dollars a year.
If your home is closer to the two, three or four thousand dollar mark, the money you will save will double and triple accordingly. Convinced that the low amount of money saved simply isn’t worth the trouble of refinancing?
Then invest this cash into your retirement fund. The miracle of compound interest will make this excess cash flow worth so much more to you in the future.
If you are still not interested in saving this type of money to make your current lifestyle easier, use it to pay down your principal. Did you know that typically, about 80% of your payment goes towards interest when you first start paying off your home?
If you refinance and save yourself money per month, don’t stop paying that mortgage payment you were used to. Specify to your lender that you want to pay that extra money towards your principal and long term, the money you save will be in the thousands.
During tough economic times, don’t let financial opportunities pass you buy. Educate yourself on the options you have available to you and when the poor economy forces the interest rates to go down, congratulate yourself on being savvy enough to take advantage of the opportunity. Your pocketbook will thank you for it.
One of the opportunities available is to watch the interest rates and take advantage of the opportunity to refinance your home. For most of us, this is a viable opportunity, as our 30 year fixed may be somewhere around six percent or even higher. The chance to save money with a lower interest rate is huge.
Well, why bother? is what some people would say. After all, you have your mortgage payment, you can afford it and you pay it. Case closed. The tiny amount of money you could save really can’t be worth going through all that extra paperwork.
Not true. There are two significant ways doing the work to refinance your home can save you and even make you more money. By reducing your fixed percentage rate, every month you could be putting several hundred dollars a year into a. your pocket or b. your principal.
If you take advantage of the opportunity to refinance your home and put that money into your pocket, even getting one point knocked off of your percentage can make a big difference to your pocketbook. For example, if you are paying 6.5% on a $100,000 loan, your monthly payment is around $550.
If you knock that down to 5.5% on a $100,000 loan, you’re looking at a fifty dollar decrease in your mortgage per month – that’s six hundred dollars a year.
If your home is closer to the two, three or four thousand dollar mark, the money you will save will double and triple accordingly. Convinced that the low amount of money saved simply isn’t worth the trouble of refinancing?
Then invest this cash into your retirement fund. The miracle of compound interest will make this excess cash flow worth so much more to you in the future.
If you are still not interested in saving this type of money to make your current lifestyle easier, use it to pay down your principal. Did you know that typically, about 80% of your payment goes towards interest when you first start paying off your home?
If you refinance and save yourself money per month, don’t stop paying that mortgage payment you were used to. Specify to your lender that you want to pay that extra money towards your principal and long term, the money you save will be in the thousands.
During tough economic times, don’t let financial opportunities pass you buy. Educate yourself on the options you have available to you and when the poor economy forces the interest rates to go down, congratulate yourself on being savvy enough to take advantage of the opportunity. Your pocketbook will thank you for it.