The Station

Posted on March 2, 2015 by Trevor Hammond

Platforms sign, Moor Street Railway Station, Birmingham

TUCKED AWAY in our subconscious minds is an idyllic vision in which we see ourselves on a long journey that spans an entire continent. We’re traveling by train and, from the windows, we drink in the passing scenes of cars on nearby highways, of children waving at crossings, of cattle grazing in distant pastures, of smoke pouring from power plants, of row upon row upon row of cotton and corn and wheat, of flatlands and valleys, of city skylines and village halls.

But uppermost in our conscious minds is our final destination–for at a certain hour and on a given day, our train will finally pull into the Station with bells ringing, flags waving, and bands playing. And once that day comes, so many wonderful dreams will come true. So restlessly, we pace the aisles and count the miles, peering ahead, waiting, waiting, waiting for the Station.

“Yes, when we reach the Station that will be it!” we promise ourselves. “When we’re eighteen . . . win that promotion . . . put the last kid through college . . . buy that 450SL Mercedes-Benz . . . have a nest egg for retirement!” From that day on we will all live happily ever after.

Sooner or later, however, we must realize there is no Station in this life, no one earthly place to arrive at once and for all. The journey is the joy. The Station is an illusion–it constantly outdistances us. Yesterday’s a memory, tomorrow’s a dream. Yesterday belongs to a history, tomorrow belongs to God. Yesterday’s a fading sunset, tomorrow’s a faint sunrise. Only today is there light enough to love and live.

So, gently close the door on yesterday and throw the key away. It isn’t the burdens of today that drive men mad, but rather the regret over yesterday and the fear of tomorrow. Regret and fear are twin thieves who would rob us of today.”Relish the moment” is a good motto.

So stop pacing the aisles and counting the miles. Instead, swim more rivers, climb more mountains, kiss more babies, count more stars. Laugh more and cry less. Go barefoot oftener. Eat more ice cream. Ride more merry-go-rounds. Watch more sunsets. Life must be lived as we go along. The Station will come soon enough.

By Robert J. Hastings

 

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Debt – the Good, the Bad, and the Ugly, Part 2

Posted on February 25, 2015 by Trevor Hammond

Good,bad,ugly2“Debt–the Good, the Bad, and the Ugly” – Part 2

1. OK, if you have “bottomed out” on debt, if you are really ready to make a change, then your first move must be putting money into a savings account. You are probably in “trouble” because you are lousy at saving money. If you maintain a financial lifestyle of spending more than you earn, then working to pay off debt is like putting a bandage on a broken leg: You’re “doing something,” but in no way is it going to help. The requirement that you save money out of current income applies to all who work for a living. If you don’t save, then all of the rest of this advice will be meaningless to you.

2. Stop using all of your credit cards–no exceptions. If you can’t pay cash for something, then you don’t need it. Cut them up if you must.

3. Make a plan–list each credit card balance and interest rate, then work on paying off the cards with the highest interest rates first–or, if it helps psychologically, pay off a low-balance card just to experience the victory. *Reminder – our RepaySMART Program™ is a complimentary program that has this strategy built in! Call us to schedule your review and get your complimentary plan

4. If you are getting a tax refund, if you get a bonus from work, or if you come into any other unexpected clot of money, pay it immediately on your credit card debt.

5. Pay more than the minimum every month on every card. Don’t be fooled: The credit card company is NOT doing you a favor by requiring only a small monthly payment.

6. Reduce the interest rate you are paying by calling each company and asking for a lower rate. Changing your interest rate from 20% to 12% is a pretty healthy 40% reduction. If you can effect this change, next look at consolidating other higher-rate balances into this card.

7. As a last resort, there may be circumstances where it makes sense to refinance your home to pay off credit card debt. The risk here is that you may just go out and run up more debt, making this the worst possible action you could take if you’re simply going to waste the monthly savings. The absolute key here is to use those savings to begin building your savings and financial safety. Often times we can connect you with trusted financial planners who will help by becoming accountability partners to you, along with us, and create a system for you to save consistently and grow your nest egg.

 

Following these suggestions just might constitute the beginning steps on your pathway toward financial health. Our passion is to help be the catalyst for this bigger, better future!

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Good, Bad and Ugly Debt, Part 1

Posted on February 23, 2015 by Trevor Hammond

good-bad-ugly-seo “Debt–the Good, the Bad, and the Ugly” – Part 1

There are three types of debt, “Good”, “Bad”, and “Ugly”. Let’s discuss the differences and provide some direction for addressing your debt-related issues.

When discussing debt with clients, too often they express a sense of guilt or shame that they owe money. One of the first rules we teach is “No Shame, No Blame”. While we do want clients to be free of debt, let’s be clear on one thing: some types of debt are defensible, perhaps even desirable. So let’s dispense with the guilty complex, and the destructive habits of blaming past bad decisions, and focus on greater clarity and understanding of debt.

Good Debt

For at least a moment, forget what those television gurus tell you about paying off your mortgage. They are not necessarily addressing your specific situation, and it is blatantly misleading to pass off such advice as applicable to all. The simple truth is that most of us could not purchase our homes but for the availability of “cheap” mortgages.

Why might it be best for you to carry mortgage debt? There are three primary reasons:

  1. The use of borrowed money, or leverage, allows one to purchase much more home than would be possible if paying with cash–which, in turn, means that one will benefit much more from appreciation of the property over time.
  2. Mortgage interest is fully tax deductible for most middle-class Americans, reducing the after-tax “cost” of this debt by approximately one-third.
  3. Mortgage debt is a hedge against inflation (and is better than gold in this respect because you can live in your house). Paying a locked-in interest rate for 30 years, while inflation eats away at many other investments, is a vital benefit.

Other possible kinds of good debt include loans for education since the debt increases future earning; automobile debt, if you cannot possibly buy a car for cash and don’t buy more car than you need, even at 0% interest; and, in rarer circumstances, debt incurred for investment purposes.

Bad Debt

Even mortgage debt can be bad debt if the interest rate is pretty much anything more than 1% higher than the rate you can readily obtain at the present time (depending, of course, on how long you plan to stay in your house). In this situation you should consider refinancing immediately.

Bad debt generally also includes car loans (the longer the term, the worse the debt), boat loans, vacation house loans (interest is possibly deductible, but you are also probably not using the house enough to be carrying debt on it)–anything involving the payment of interest that is unreasonably high, that is not tax deductible, or that is not for “essentials.”

Ugly Debt

Put as simply as possible: Unpaid credit card balances constitute the absolute worst kind of debt imaginable. Just as compounding interest works meaningfully to your advantage when you are saving for retirement, the compounding of credit card interest charges puts you on a debt treadmill that can be very difficult to escape. While difficult, it certainly is not impossible!

Generally speaking, it doesn’t take much to convince clients to pay off their credit card debt–but that’s the easy part of the equation, isn’t it? The real work comes in making a plan to pay this debt off and then sticking to it. Stay tuned for Part 2 when we explore specific strategies to eliminate “bad” and “ugly” debt.

And don’t forget – as part of our unique service for homeowners, we provide complimentary reviews and debt elimination plans. Just contact us to schedule!

 

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The Mayonnaise Jar and Wine

Posted on February 9, 2015 by Trevor Hammond

Jar-of-Golfballs

As you settle back in to a more normal routine after the holidays, here is a great story to help you plan your 2015 goals around what is most important.

When things in your life seem almost too much to handle; when 24 hours in a day is not enough; remember the mayonnaise jar and the 2 glasses of wine…

A professor stood before his philosophy class and had some items in front of him. When the class began, wordlessly, he picked up a very large and empty Mayonnaise jar and proceeded to fill it with golf balls.

He then asked the students if the jar was full. They agreed that it was.

The professor then picked up a box of pebbles and poured them into the jar.

He shook the jar lightly. The pebbles rolled into the open areas between the golf balls.

He then asked the students again if the jar was full. They agreed it was.

The professor next picked up a box of sand and poured it into the jar. Of course, the sand filled up everything else. He asked once more if the jar was full. The students responded with a unanimous ‘yes.’

The professor then produced two glasses of wine from under the table and poured the entire contents into the jar, effectively filling the empty space between the sand. The students laughed.

Now, said the professor, as the laughter subsided, ‘I want you to recognize that this jar represents your life. The golf balls are the important things; your family, your children, your health, your friends, and your favorite passions; things that if everything else was lost and only they remained, your life would still be full.’

The pebbles are the other things that matter like your job, your house, and your car. The sand is everything else; the small stuff.

If you put the sand into the jar first,’ he continued, ‘There is no room for the pebbles or the golf balls. The same goes for life. If you spend all your time and energy on the small stuff, you will never have room for the things that are important to you.’

Pay attention to the things that are critical to your happiness. Play with your children. Take time to get medical check-ups. Play another 18. Do one more run down the ski slope. There will always be time to clean the house and fix the disposal. Take care of the golf balls first; the things that really matter. Set your priorities. The rest is just sand.’

One of the students raised her hand and inquired what the wine represented.

The professor smiled. ‘I’m glad you asked. It just goes to show you that no matter how full your life may seem, there’s always room for a couple of glasses of wine with a friend.’

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Avoiding the First Financial Blind Spot

Posted on February 6, 2015 by Trevor Hammond

Blind spots are all around, preventing us from getting where we want to go. In our quest to transform the lives of every client through financial education and direction, we have identified four blind spots that everyone falls into on the road to financial independence.

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Our goal is to help you learn what these four blind spots are, and how you can begin to avoid them as you pursue your financial goals and dreams.

Blind Spot #1 – Lack of a Plan

It is said that failing to plan is the equivalent to planning to fail! A plan is like a road map to get you from where you are today to where you want to go tomorrow. A well-defined plan provides the clarity and direction you need to begin taking action on achieving your most important goals.

But, if having a plan is so important, why do so few people take the time to develop a plan? Without a plan, how will you know if you’ve succeeded? How will you know if you are on the right track and you’ve arrived at your ideal destination?

The fact is most of us live life at such a fast pace that it is difficult to dedicate the uninterrupted time necessary to map out a clear plan. After a full day of work, preparing dinner for the family, getting the kids bathed and to bed…it’s no wonder we don’t have the energy to plan out our finances and future. And, if and when we finally do, many people simply do not know where to start.

If you truly want to save more money, you need a Savings Plan. To better manage where your money goes, you need a Spending Plan. If you have debt you’d like to pay off, you need to develop a Debt Elimination Plan. If you ever want the freedom to retire when you want to – and how you want to – you need a Retirement Plan.

And probably more important than anything else, to live a fulfilled life, with the freedom to do what you want to do – rather than what you have to do – you need a Life Plan.

Understanding you need a plan is only the first step. Developing a realistic, achievable plan takes work. It takes commitment and discipline. Plans will change; thus they must be reviewed and adjusted regularly.

Start by writing down your financial goals. Next to each goal, write down the very next step to moving forward toward achieving that goal. There is no magic pill. It is simply taking one step at a time, and remembering to focus on your progress.

Then, schedule time each week to plan your life and your money. It could be 30 minutes one night per week, or one hour every Saturday.

As your preferred mortgage experts, we are committed to helping you avoid this first blind spot and develop a safe, successful plan for your mortgage and real estate.

 

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3 Questions to Help You Decide if Refinancing Makes Sense

Posted on February 3, 2015 by Trevor Hammond

Time To Refinance Concept.It seems that everyone with a home, and a mortgage, is talking about the unbelievably low interest rates and the potential refinance opportunities available right now. With 30-year fixed mortgage rates recently dipping into the 3’s, even those homeowners with rates in the 4’s are beginning to wonder if refinancing (again?) might make sense.

So how do you truly determine if a refinance makes SMART financial sense for you?

Traditionally people have followed a “1%” rule. This meant that if you could lower your rate by 1% or more, you should refinance.

Still others (many banks, credit unions, and other lenders) preach a simple, though somewhat naïve approach of dividing your closing costs by the monthly payment savings to determine how fast you’ll break even from a refinance. This means that if you spend $4,000 to refinance your mortgage and save $100 per month, you break even in 40 months. The homeowner can then decide if they’ll live in the home longer than 40 more months, it makes sense.

But what is missing here? To be honest, quite a bit.

Here are 3 critical questions we help our clients answer before advising to move forward (or not) on a refinance.

  1. What are your key objectives with the refinance? Are you trying to save money for other things, pay off your mortgage faster, or consolidate other debt? Given the above example of simply calculating your break-even point, what does it look like if you apply that $100 of monthly savings to your new mortgage, ultimately paying it off 7-10 years sooner? What if you save the $100 in a college fund for your 3-year old child, earning 7.0% for the next 15 years? What if you are suddenly able to pay off a high-interest credit card twice as fast using the monthly savings from a refinance? Understanding your objectives with refinancing, and the savings it will bring, will help in your decision to move forward or not.
  2. How long do you expect to have this mortgage? As mentioned above, it IS an important question. If you plan to move in three years when the kids leave for college, and your break-even is four years…refinancing may not make sense. On the other hand, a true break-even must take into consideration the tax impact as well as the “mortgage holiday”. Certain costs of refinancing may be tax deductible the following year(s). In addition, there is no mortgage payment due the month following the closing of your refinance. At Aspire Mortgage Group, we have a custom Refinance Break-Even Analyzer, designed by financial professionals, to help correctly calculate the break-even. And it can be surprising how quickly a homeowner can actually recoup the costs (IF there are any).
  3. What other loan options or rate/fee scenarios might make sense? These days, many homeowners are taking advantage of no-cost refinances. Done correctly (and honestly), this literally means no closing costs or fees are charged to you or added to your new loan. This may mean even reducing your interest rate by .25%, with no costs, can make sense. Still others are switching to a 15-year or 20-year mortgage, at a much lower rate, with a goal to pay off their home much faster and be debt-free in retirement. We recently helped a client with 25 years remaining on their mortgage, refinance to a new 15-year mortgage at a lower interest rate. The long-term benefit is a $104,000 to their net-worth over the next 15 years.

Many homeowners are also recognizing the value of a “same-pay refinance”. This means you refinance your 30-year fixed mortgage to a new, lower rate 30-year fixed mortgage, but continue paying the same amount each month. This is perfect for homeowners who are comfortably making their current payment, and fear starting the full 30 years over, but would like to take advantage paying less interest. With this strategy, we show you how to incur no change to their current cash flow, while enjoying the opportunity to pay off your mortgage years sooner!

It is all about creating a better financial future

These questions, and a thorough analysis of your current situation and goals, can all be determined in a 10-15 minute consultation. Only two results are possible: you gain peace of mind that you are already in the best position and there is nothing more to do…or you find a new opportunity to save money and improve your financial future.

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Technology Has Improved the Homebuying Process

Posted on January 27, 2015 by Trevor Hammond

 

Tuesday, January 27, 2015 – 13:09

With interest rates still comparatively low and the 2015 homebuying season about to begin, many buyers are turning to technology to make the homebuying process easier. A poll commissioned by Discover Home Loans found that nine out of 10 survey respondents used some sort of online technology to help them with the home financing process. Eighty-one percent said that technology made it easier to share financial information with their lender and 69 percent said it helped them keep track of important financial documents.

Thirty-six percent of homebuyers said that completing the entire financing process online with no phone calls or in-person meetings would make the process easier. However, the majority still prefer to have a relationship with their mortgage banker:

►Nearly all homebuyers surveyed communicated with their lenders by phone, 94 percent, or email, 88 percent, while 67 percent of respondents met in person.

►Among those who used electronic communications, 68 percent felt it made it easier to work with their lenders.

►More than half, 54 percent, filled out their mortgage application online.

“As technology continues to become an integral part of our daily lives, it’s only natural that buyers also use it to make the home financing process easier,” said TJ Freeborn, senior manager of customer experience at Discover Home Loans. “Not only are homebuyers using the Internet to look at homes and neighborhoods, they’re also using it to submit documents and complete applications online.”

Four out of five homebuyers submitted documents electronically to a lender, real estate agent or at closing. Of those, nine out of 10 say it was easy to do and saved time. Also, recent homebuyers felt secure submitting documents virtually. Eighty-six percent felt comfortable sharing personal and financial information electronically with their lenders.

Homebuyers who used online tools to submit documents said it saved time (92 percent), helped them stay organized (83 percent), and cut down on paperwork (68 percent).

►More than 70 percent of homebuyers submitted lender documents through email, an app or a Web site.

►Almost half, 47 percent, were pre-qualified for a mortgage through a lender’s site.

►Four in 10 read online lender reviews to help them choose a lender

When thinking back about the lending process, homebuyers believe online improvements would have made it easier to work with their lender, including:

►Secure ways to submit electronic documents, 77 percent.

►Easy-to-use online applications, 72 percent.

►24-hour support, 52 percent.

The national survey of 1,003 recent homebuyers was commissioned by Discover Home Loans and conducted by Versta Research, an independent survey research firm. The sample was carefully balanced and weighted using American Housing Survey and National Association of Realtors (NAR) data to ensure an accurate representation of homebuyers by region, age, marital status and first-time versus repeat homebuyer status.

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7 Ways to Free Yourself From Debt

Posted on January 19, 2015 by Trevor Hammond

150108_FF_PayDownDebtThese smart and easy strategies can get you back in the black before you know it.

One in eight Americans don’t think they’ll ever pay off what they owe, according to a survey by CreditCards.com.

But it’s a new year and a new balance sheet. And the seven steps here can help you put hundreds more towards your bills every month—while still living the kind of life you want.

Can you taste the freedom?

1) Know What You Owe

It may sound easy, but this can be the hardest part, says Gail Cunningham, spokesperson for the National Foundation of Credit Counseling. “A disturbing number of people come to our offices with grocery bags filled with bills,” she adds.

After you’ve tallied up your total debt, make a “cash-flow calendar” to track how much money is going in and out of your accounts, and when, Cunningham says. When do you get your paycheck, and how much do you get net taxes and benefits? When is each bill due every month, and what is the typical cost? How much do you spend on each of your other expenses, and when?

The more you want to procrastinate on this step, the more you need to do it.

“People resist doing this,” Cunningham says. “I think that’s because they’re afraid of what they’ll find. There’s nothing like seeing your spending staring back at you. That could force a behavioral change.”

2) Follow the 10×10 Rule

If you want to create a debt-repayment plan you can follow, you need to set reasonable and sustainable goals. Curb rather than cut your spending, advises Kevin R. Weeks, president of the Association of Independent Consumer Credit Counseling Agencies.

“Just like a New Year’s resolution to get in shape, it’s very difficult to go cold turkey and say, ‘I’m going to do all this, this week, or today,’” Weeks says. “People bite off more than they can chew, with good intentions.”

Start slowly by following Cunningham’s 10×10 rule: “If you could shave $10 off 10 disposable spending accounts, you’d never miss it, never feel it, never feel deprived—and you’d have another $100 in your pocket,” she says. “Little money adds up to big money.”

3) Spend Cash

Researchers have found that when people shop with credit cards and gift certificates, they are more likely to make impulse purchases on luxury items because they feel like they’re using “play” money. If that sounds like you, cut up the plastic.

And force yourself to feel the pain associated with spending real money by going on a cash-only diet.

“People who live on a cash basis typically save 20% over their previous spending, without feeling deprived,” Cunningham says. “It’s because using cash creates a heightened sense of awareness. You are more contemplative, and you realize you’re going to have to pay for things with hard-earned cash. Something clicks in that allows you to feel better about not buying the item.”

To read more of this article, click here

http://time.com/money/3654746/get-out-of-debt-credit-cards/

 

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273,000 Residential Properties Regained Equity in Q3

Posted on January 12, 2015 by Trevor Hammond

House in clouds

 

 

 

 

 

 

CoreLogic has released new analysis showing nearly 273,000 U.S. homes returned to positive equity in the third quarter of 2014, bringing the total number of mortgaged residential properties with equity to approximately 44.6 million, or 90 percent of all mortgaged properties. Nationwide, borrower equity increased year over year by approximately $800 billion in the third quarter of 2014. The CoreLogic analysis indicates that approximately 5.1 million homes, or 10.3 percent of all residential properties with a mortgage, were still in negative equity as of Q3 2014 compared to 5.4 million homes, or 10.9 percent, for Q2 2014. This compares to a negative equity share of 13.3 percent, or 6.5 million homes, in Q3 2013, representing a year-over-year decrease in the number of underwater homes by almost 1.5 million (1,433,296), or three percent.

For the homes in negative equity status, the national aggregate value of negative equity was $338 billion at the end of Q3 2014, down $10.2 billion from approximately $348.2 billion in the second quarter 2014. On a year-over-year basis, the value of negative equity declined from $403.2 billion in Q3 2013, representing a decrease of 16.2 percent in 12 months.

Of the 44.6 million residential properties with positive equity, approximately 9.4 million, or 19 percent, have less than 20-percent equity (referred to as “under-equitied”) and 1.3 million of those have less than 5-percent equity (referred to as near-negative equity). Borrowers who are “under-equitied” may have a more difficult time refinancing their existing homes or obtaining new financing to sell and buy another home due to underwriting constraints. Borrowers with near-negative equity are considered at risk of moving into negative equity if home prices fall. In contrast, if home prices rose by as little as five percent, an additional one million homeowners now in negative equity would regain equity.

“Nationally, the negative equity share is down over three percentage points over the past year. Declines were concentrated in a handful of states, such as Nevada, Georgia, Michigan and Florida,” said Sam Khater, deputy chief economist for CoreLogic. “Forecasted house price appreciation of about five percent over the next year suggests that negative equity should be at about 8 percent a year from now, still above average, but approaching the pre-crisis level.”

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“Negative equity continued to decrease in the third quarter as did the level of homes mired in the foreclosure process. This should hopefully translate into less friction in the housing market as we move forward,” said Anand Nallathambi, president and CEO of CoreLogic. “Better fundamentals supporting homeownership in the face of higher rents should attract more first-time homebuyers to the market this year and next.”

Highlights as of Q3 2014:

►Nevada had the highest percentage of mortgaged properties in negative equity at 25.4 percent, followed by Florida (23.8 percent), Arizona (19 percent), Rhode Island (14.8 percent) and Illinois (14.1 percent). These top five states together account for 33.1 percent of negative equity in the United States.

►Texas had the highest percentage of mortgaged residential properties in an equity position at 97.4 percent, followed Alaska (97.1 percent), Montana (97.1 percent), Hawaii (96.4 percent) and North Dakota (96.1 percent).

►Of the 25 largest Core Based Statistical Areas (CBSAs) based on population, Tampa-St. Petersburg-Clearwater, Fla., had the highest percentage of mortgaged properties in negative equity at 25.5 percent, followed by Phoenix-Mesa-Scottsdale, Ariz. (19.3 percent), Chicago-Naperville-Arlington Heights, Ill. (16.3 percent), Riverside-San Bernardino-Ontario, Calif. (15 percent) and Atlanta-Sandy Springs-Roswell, Ga. (14 percent).

►Of the same largest 25 CBSAs, Houston-The Woodlands-Sugar Land, Texas had the highest percentage of mortgaged properties in an equity position at 97.5 percent; followed by Dallas-Plano-Irving, Texas (97 percent); Anaheim-Santa Ana-Irvine, Calif. (96.6 percent); Portland-Vancouver-Hillsboro, Ore. (96.4 percent) and Denver-Aurora-Lakewood, Col. (95.9 percent).

►Of the total $338 billion in negative equity, first liens without home equity loans accounted for $178 billion, or 53 percent, aggregate negative equity, while first liens with home equity loans accounted for $160 billion, or 47 percent.

►Approximately three million underwater borrowers hold first liens without home equity loans. The average mortgage balance for this group of borrowers is $230,000. The average underwater amount is $58,000.

►Approximately 2.1 million underwater borrowers hold both first and second liens. The average mortgage balance for this group of borrowers is $299,000.The average underwater amount is $78,000.

►The bulk of home equity for mortgaged properties is concentrated at the high end of the housing market. For example, 94 percent of homes valued at greater than $200,000 have equity compared with 85 percent of homes valued at less than $200,000.

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Article source:

 

 

http://nationalmortgageprofessional.com/news/52332/corelogic-273000-residential-properties-regained-equity-q3

 

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What A Year for Home Loan Rates!

Posted on December 29, 2014 by Trevor Hammond

Mortgage Rates

As we close out 2014, home loan rates remain near historic lows. In fact, rates for fixed-rate mortgages are much lower now than they were a year ago! Combine these lower rates with rising house values, and we find ourselves with incredible opportunities to help homeowners save money.

Lower Rates: Looking at the chart provided, you will see that the price of 30-year mortgage bonds has gone up quite a bit in 2014, and simply put…as the price of the bonds increase, the rate you pay on for a 30-year fixed rate mortgage goes down.

Candlesticks Image - 12-29-14

Rising House Values: According to Zillow.com, house prices have risen 5.5% in the past year for the Portland Metro market. That means a house worth $400,000 a year ago could potentially be worth $422,000 for a gain of $22,000!

What does all of this mean for you? Well, maybe nothing. But for many, the immediate impact is being able to refinance and take advantage of the current market. Here are some ideas:

  • Enough home equity to finally be able to lower your rate and payment: Thousands of homeowners have been unable to take advantage of this low interest rate environment due to having no equity in their home. The rising values are now opening up the door (finally!) for those who used to be “upside down” on their mortgage (i.e. owed more on their mortgage than their house was worth).
  • Eliminate mortgage insurance: The rise in values also means you might be able to refinance and eliminate that costly mortgage insurance. Even if you do not 20% equity in your home, there are ways to restructure your mortgage, eliminate or greatly reduce the mortgage insurance, and save hundreds of dollars each month!
  • Shorten your mortgage term: Many homeowners are looking forward to retirement, but are unsure how their house and mortgage(s) will play into that. With rates so low, and assuming you have plenty of positive cash flow each month, it might make sense to review your current mortgage repayment plan.   For example, we are helping a client with 24 years left on their mortgage, refinance into a new 15-year fixed rate mortgage so they can retire mortgage-free! While the new monthly payment increased a bit, they were more than comfortable knowing that this strategy will potentially save them over $100,000 over the next 15 years compared to the repayment plan they were on.
  • Consolidate a high rate second mortgage or home equity line of credit: If you have a first mortgage AND a second mortgage or home equity line of credit on your home, the increase home values might now give us room to consolidate those loans into one, lower rate, first mortgage.

If you would like a review of your current mortgage situation, along with a complimentary analysis to see if refinancing will benefit you, contact your preferred Aspire Advisor!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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