It’s no secret that housing inventory has been low the past year, causing buyer competition and rising home prices/values. Many homeowners don’t realize they may be able to leverage the current market, even if they don’t plan to purchase a new home anytime soon. The mix of rising home values and low interest rates may offer you an opportunity to leverage your home’s equity to:
Refinance and Consolidate Debt – Extracting equity from your home to pay off auto loans, school loans, credit cards, and other debts allows you to roll these debts into one mortgage payment. This can often be beneficial if you are paying high interest rates on your non-mortgage related debts.
Remodel – Today, there are several great loan programs that allow you to finance home renovations, repairs, and updates into your home loan. This can be a great option for homeowners that want to stay in their current home, and utilize their home’s equity to make needed updates.
Eliminate Mortgage Insurance – With the growing home values we have seen the past few years, many borrowers are opting to refinance and eliminate their mortgage insurance. This has the potential to save you a lot of money every month on your mortgage payment.
Refinance into a Shorter-term Loan – Shorter-term home loans, such as 15 and 20-year loans typically offer lower interest rates. Today’s low rates make it a great time to consider refinancing into these shorter-term home loans, as they allow you to pay down your home loan faster and spend less money on interest each month.
If you’re interested in learning more and would like to compare your current home loan to one of these options, please contact us today.