Refinancing your home is very popular now, while interest rates enjoy record lows. But be careful. Are you looking to pay off debt or create more? You must heavily weight your reasons for refinancing before jumping into a new loan. Luckily, we at Downs Financial, Inc. are here to help.
Our licensed loan officers can offer you expert advice on your refinance and help you avoid all-too-common pitfalls homeowners often fall into. For example, buying a new car with refinance loan savings isn't paying off debt, it's creating more debt. That's the difference. This can bring more trouble than it's worth if you're not careful because you've not only created debt on top of your original mortgage, but you've created a new liability with the same amount of money you had before.
The difference between money you already had and money you come into is significant. Many people refinance to be able to afford things they otherwise wouldn't. However, experts agree that you should look at a refinance as a way of getting out of debt, not affording more.
For example, a home equity loan or second mortgage doesn't really "give" you more money than you already had. In a way, you are simply liquidating your assets in the principal you've paid on your mortgage. Yes, it's money that you already had, but you're still paying interest to take it out. We can assist you in avoiding common mistakes and miscalculations. Visit our website or give us a call today so we can help you build your financial future with a solid refinance plan.
