Refinances still make up almost one-third of all mortgage transactions, even though rates have risen. You may be wondering how this can be?
Many consumers have amassed a large amount of debt, paying much higher rates of interest, thanks to the Fed hiking rates so aggressively. And many of those individuals are only making the minimum payments, with no path to paying off their debt. At the same time, most homeowners have record levels of equity in their homes.
Many homeowners are benefiting from a type of refinance where we pull that equity out of the home to pay off those debts, saving money on their overall monthly payments. Additionally, there are ways to gain equity at an accelerated pace and significantly shorten the length of your mortgage, by applying those savings as an additional payment each month.
It’s about saving interest rather than having the lowest interest rate. As an example, if you have $55,000 in highinterest debt and you pay that back over seven years you will have potentially paid back $40,000 in interest alone.
If you are currently paying a monthly mortgage insurance premium, you may also be able to remove that from your monthly obligations with a refinance.
There is no need to start your mortgage over at 30 years either; you can set your mortgage term to match the remaining years on your current mortgage. Call me today to review your current debt situation and see if I can help.
Don’t wait. Contact Trusted Lending Center today and embark on a journey toward financial freedom. For more information on Trusted Lending Center, visit trustedlendingcenter.com or call (480) 400-9884.