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SHOULD I REFINANCE? What do I need to consider? www.LLC/

If you are thinking about refinancing, here are a few questions to ask yourself first. Begin by understanding the term equity. Equity is defined as the difference between the market value of a property and the claims held against it, or how much you owe the lender for it. If you can answer the questions below, you will have a better focus on your refinancing choices.  Do I fully understand interest? People that do not understand

interest usually pay it because that is what they’re taught to do. If I took out a 30 loan for $100,000 at 7% interest, I would be paying approximately $150,000 in interest alone over the course of those 30 years. That’s $150K beyond the original loan amount! Is this the price of doing business in today’s society? Perhaps, but maybe there are other solutions to consider. Explore as an alternative.  Do I want to use a mortgage to pay off credit cards and reduce debt? This practice is not uncommon, but it could potentially have a huge financial impact on your family. This turns a short-term debt into a long-term debt. If you don’t mind paying out more money over time and you are practicing self-control and completely paying off your debts with the equity in your home, this might be a comfortable choice for you.  Do I want to make updates to my home for resale? This is another reason people refinance, or in some cases they use a home equity line of credit. A line of credit gives you more flexibility and can be treated as a second mortgage. Whether you refinance or get a line of credit to fix up your home, dedication and self-control will be required. Stay focused. Use the money only towards your goal of updating your home if that is what you planned. As exampled in the Homeowner Options Revealed CD, if life happens and you end up using your equity money because an emergency mandates the expense, then you may not have the financial ability to make the original repairs. Your loan payments will be a monthly reminder of what could have been.  What if you’ve been paying for 10 years already? If you made monthly payments over the course of 10 or 20 years on your 30-year

mortgage, refinancing to another 30-year loan will only increase your costs over time. Banks may not tell you this unless you have a lender who is more interested in helping you make an educated decision than just being interested in obtaining your money. Then again, if they did tell you, would you be teachable and willing to listen? Chances are if you are only focused on the money yourself, you might not hear your lender share concerns about your finances. Stay in tune and be willing to learn both the positives and the negatives. ďƒ˜ Do you want to have different terms or a lower interest rate on your loan? If you have $75,000 left on a loan amount of $130,000 and you want to reduce your monthly payment and interest rates, you can consider refinancing the remaining balance to try and reduce your payments. This might be a worthwhile option for you. It is not a bad thing to want to create a better plan for yourself and your family’s financial future through refinancing. But it's a good idea to make sure you understand all the details of the process. All of the reasons above are good reasons to refinance, but it ultimately comes down to the numbers. If you are at peace with the decision then you know it will work out. If you are uncomfortable with it for any reason, then ask questions until you are satisfied and comfortable with the answers. Depending on what your goals are, you will be able to understand if refinancing is a wise decision for you. Or maybe you should be looking for another solution to your problem. The following website is not a referral from me to a refinancing company, but I believe this company gives the consumer good information for further education. Dangers of Mortgage Refinancing

Be teachable, and know you are able to get what you want if you keep searching.

Kellie These articles are copy righted protected and written to help anyone seeking information to improve their situations, add personal growth to their list of priorities or coach someone they care about. I encourage you to share these articles, and when you do, please make certain they remain in their full and complete version. Thank you!

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Advantages of Refinance  

Be teachable, and know you are able to get what you want if you keep searching.

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