BOB'S BLOG

Yes, rates are on the rise and as a mortgage holder - that's not great.    However, equity in your home has also risen substantially.   While a refinance to lower your MORTGAGE payment is not likely a benefit right now, a refinance to lower your HOUSEHOLD payments definitely is still worthwhile.  One of the best ways to accomplish that is through a Cash-Out Mortgage. 

Rising housing prices can help fix many issues.

There are 2 main benefits to a Cash-Out Mortgage: 

1. Pay off your non-mortgage debt = improved cash flow. 

Cash-Out Mortgages are the fastest way to get access to the equity that you have already gained in your home. You can use that cash to pay off your other debts and consolidate them into a single mortgage payment rather than pay each debt separately.   While your overall debt doesn't change, the payments you make on that debt each month are lower.   Paying off your other debts by default should improve your credit score puts you in a better position for future transactions.

2. Make home improvements = Invest in your biggest asset.

If you are looking to remodel your kitchen, install a pool, or just make much-needed upgrades, Cash-Out Mortgages can give you the funds to not only accomplish those goals but make them affordable as well.  Improving your home will also increase its value allowing you to leverage your equity again in the future or give you more profit when selling the home. 

Make sure to consider all of your options before counting out the possibility of a refinance. There are always opportunities to improve your financial situation.