When I started this blog and started getting serious about paying off debt, one of the first things I did was work to refinance my mortgages. After months of working with multiple banks and credit unions, I knocked about 2.5% off each of them. Sure, 2.5% may not seem like much, but considering that each mortgage is for hundreds of thousands of dollars, my annual savings on interest charges is well over $5,000.
Every little bit counts!
That money saved goes straight to paying down student loan debt.
Refinancing could be good for all kinds of people
If you’re a property owner, there’s a pretty good chance you’re locked into a rate higher than what would be available to you right now.
There’s plenty of reasons why that might be; maybe you bought a home when all interest rates were higher. Maybe you got an adjustable rate mortgage with a low, fixed teaser rate that has since reset. Maybe you just couldn’t get a great rate since you were just starting out and hadn’t yet built up much of a credit history.
If you want to convert part of your home’s value into money that is spendable right away, you should consider taking out a reverse mortgage. You can use a reverse loan to get ready cash for your retirement in order to live a more comfortable lifestyle. You do not have to worry about paying any of the money back right away, since there are no monthly loan bills to pay. Instead, you will be periodically sent notices reminding you of your loan balance, but part of how a reverse mortgage works is that you can make those payments as frequently or infrequently as you want. Just like any other type of loan it has it’s pros and cons for example one of the benefits of reverse mortgages is that It’s nearly impossible to default on this sort of home loan because it won’t be due for repayment until you pass away or choose to move to another location.
Got any other tips for saving on housing payments?