One of the themes that has come out of the madness of the last two years is the idea that it’s an opportunity to ‘Reset’. Resetting how we work, where we work and resetting how we treat each other and the environment are all recurring themes.
One of the other themes that I have started bumping into is the idea that we might start thinking about resetting our finances as well.
The opportunities are there, with the increase in property values, to refinance your mortgage and thereby make your lives easier. At the same time, you can reduce your monthly payment stream or improve your living space and enhance that feeling of home.
In any case, if you are thinking about a re-finance, here are some tips:
1) Be strategic – It’s really important to be aware of the costs but it’s also important to consider the benefits. You’ll likely have to pay some form of penalty, but it may be worth it if your monthly payment obligations are reduced significantly. You can even use the saved funds to accelerate the paydown of the new mortgage.
2) Have a purpose – whether its debt management, investment, gifting funds to kids or renovation, make sure there’s always a purpose for the funds.
3) Do it once and be done – Be sure of the amount you want to re finance. You double the cost with a second re-finance and have none of the savings, so it should be avoided.
If you are thinking about the possibility of re-financing, I can help. Just give me a call anytime.
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