You get an annual physical. You see the dentist once or twice a year. You sit down with your accountant yearly, too. Shouldn’t you check in on your mortgage just as often?
Ask yourself: Is your mortgage still working for you? Here’s why you might want to check in on it:
- You could be eligible for a lower interest rate. Rates are predicted to be in the low 2’s for the first quarter of 2021! It's important to evaluate how your rate measures up at least on an annual basis. Refinancing to a new rate even 0.25% lower could save you thousands of dollars in the long run. It’s also a great time to purchase investment property or that second home.
- It may free up extra cash. Could refinancing to a longer-term loan or lower rate reduce your monthly payment? What would putting that tax refund toward your balance do? Making simple adjustments can sometimes save you big, both monthly and over the course of your mortgage.
- It could help you better manage your debts. There are ways you can use your mortgage to pay off higher-interest debts, consolidate them all into one, easy-to-make monthly payment, and ultimately have the opportunity to save money in the long term.
- You may be able to cash in on your home for college tuition, medical bills, or other expenses you’re dealing with. Your home may have serious value, and there are several ways your mortgage might be able to help you tap into it. Could you refinance and get enough cash to pay for the first big tuition bill? That annual family vacay? Those much-needed home or car repairs?
- Improved buying power for future purchases to save both future and current homeowners a lot of money down the line and improve the homeowners’ standing in qualifying for future loans.
