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What will your bills look like after the holidays?12.06.2016

Are you already worried what your bills will look like after the holidays? Think about refinancing or a reverse mortgage now! 

 

The tree is trimmed, the food is cooked, and presents are wrapped. Everything is in order for the holidays. What about your budget? Trying to figure out bills after the holidays is just as stressful as the holidays. Don’t let those after holiday bills get you down. The month of December may be the perfect time for you to think about refinancing or a reverse mortgage to pay off those credit card bills or plan ahead for the New Year. Aside from paying off debt there are many reasons to refinance or take a reverse mortgage.

What is refinancing?

Refinancing is taking out a new mortgage to replace your existing mortgage to obtain lower rates and reduce your monthly payments. You may have a few options when refinancing. Rate and term refinancing can help to change your loan’s terms. Interest rates might be lower than when you originally took out your loan or maybe you started with a 30 year loan and now want to change over to a 15 year loan. Another option is cash out refinancing. In this case you might take out a higher mortgage for more than what you currently owe in order to receive some cash at closing. Here are a few reasons why someone may choose to refinance.

Refinancing to lower your monthly mortgage payments

It may be possible that the current mortgage rates are lower today than when you originally took out your mortgage. If this is the case you can lower your monthly mortgage payments by taking advantage of the lower interest rates and refinance.

Change the terms of your mortgage through refinancing

A person may decide to refinance to help change the terms of the mortgage. Some of the terms that may be possibly changed through this process are changing from an adjustable rate mortgage to a fixed rate mortgage. One could also change the length of the mortgage. If you started with a 30 year mortgage you could change to a lower term such as a 15 year mortgage. You may initially be paying a slightly higher monthly mortgage, but your mortgage would be paid off sooner and it’s possible you would have a lower interest rate.

Tap into your home equity through refinance

Another reason someone may refinance their home is to tap into their home equity. For example, you could refinance a home that you owe $150,000 on and take out a mortgage for $180,000, which would have you walking away with a check for $30,000. Talk to us at Mortgage Options, Inc. to see if you qualify for this option or something similar.

After age 62, apply for a reverse mortgage

If you are 62 years old or older, another option after the holidays is a reverse mortgage. A reverse mortgage uses the equity built up in your home as a supplemental source of income. Seniors can opt for a monthly payment, line of credit or lump sum payout to receive help with expenses.


With all of the options a homeowner has in order to refinance or use a reverse mortgage, December may just be the best month to utilize one of these options. Many times homeowners are busy getting ready for the holidays and making sure everything is in order for visiting family and friends. Think about your refinance options today! There is no better time. Contact the professionals at Mortgage Options, Inc to learn more about all of your options.