Tag Archives: Mortgage

12Feb/23
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Key Things You Need to Know Before Refinancing Your Mortgage

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Are you considering refinancing your mortgage? If so, it’s essential to know what to expect. There are many things to think about before refinancing, and it’s important to ensure you’re making the right decision for your financial future. This blog post will discuss things you need to know before refinancing your mortgage. Additionally, be sure to review the tampa bay finance article to discover how gold IRS investing can help your retirement.

Know Your Homes Equity

One of the first things to consider before refinancing your mortgage is the equity you have in your home. Equity is how much of the home’s value you own versus what you owe on it. Generally, lenders won’t refinance a loan if the borrower has less than 20 percent equity in their home. On top of that, the more equity you have, the better deal you can get from lenders.

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Understand Your Credit Score

When you refinance a mortgage, one of the first things lenders look at is your credit score. The higher your credit score, the more likely you will be approved for refinancing and receive a lower interest rate. Generally, lenders like to see a credit score of at least 680, but this can vary depending on the lender.

Get Familiar With Refinancing Types

Before you refinance your mortgage, it is crucial to understand the different types of refinancing available. You can choose between rate and term refinancing or cash-out refinancing. Rate and term refinancing involves reducing your interest rate or changing the length of your loan. In contrast, cash-out refinancing allows you to borrow against the equity in your home for things like home improvements or debt consolidation.

Know Your Debt to Income Ratio

dealYour debt-to-income ratio is an essential factor lenders look at when considering whether or not to approve you for a loan. This ratio compares the number of your monthly debt payments to your gross monthly income. Generally, most lenders want to see that you have a DTI ratio of no more than 43 percent. Refinancing your mortgage can be a great way to save money on your monthly payments or get a lower interest rate.  However, it is crucial to understand the different types of refinancing available and ensure you have enough equity in your home before pursuing this option. Additionally, understanding what lenders look for in terms of credit score and debt-to-income ratio is vital to ensuring you get the best terms on your refinancing. By understanding these factors, you can make an informed decision about whether or not refinancing is right for you.…

06Jan/23
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Financial Moves That Help Pay Off Your Mortgage Faster

Finance, ,

What can even be more refreshing than knowing that your mortgage is finally paid off? Having the funds to do whatever you want without worrying about your loan is great. It’s possible to reach that goal ahead of schedule with a few home finances. Making more than minimum payments, setting up automatic payments, and making bi-weekly payments are all sound strategies for paying off a mortgage faster. But what can we do to pay off our mortgage faster and leave nothing but satisfaction in our wallets? Lucky for you, we share several money-saving tips to help you pay off your mortgage early.

Make a One-Time Lump Sum Payment

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Making a one-time lump sum payment is one of the most effective ways to pay off your mortgage faster. This type of payment will apply to both principal and interest, so be sure you know how much interest you will be paying each month. Depending on the size of your payment, this could shave years off your repayment schedule. What can be even better is that this payment can be tax-deductible, depending on your situation.

Pay Extra on Your Mortgage Every Month

It’s not rocket science that if you pay more each month, your loan will be paid off faster. A great way to do this is by adding a few extra payments throughout the year. For example, instead of making 12 mortgage payments per year (one per month), add an additional payment every 4 months. This strategy can save you time and money in the long run. Moreover, even if you don’t have the extra funds to make a lump sum payment, making more than the minimum monthly payments can still help you pay off your mortgage faster.

Refinance to a Shorter-Term Mortgage

The best way to get rid of your mortgage quickly is to refinance it to a shorter-term loan. This may sound counter-intuitive at first, as you would think that increasing the loan term would reduce payments, but this isn’t always the case. With some lenders, refinancing to a shorter-term loan can actually lower your interest rate and save you money over the life of the loan. And, since you are reducing the time it takes to pay off your mortgage, you will save money in the long run.

Do Some Side Hustle and Save More

side hustleIf you want to get your mortgage paid off quickly, consider taking on a side hustle. A side hustle can provide you with extra income that can be used to make additional payments towards your mortgage. Additionally, if you can save more each month, you can use that money to pay down your loan and reduce the amount of interest you pay in the long run.

No matter how you look at it, paying off your mortgage can be a daunting task. But by implementing these strategies, you can make it easier and faster. With some patience, planning, and wisdom, you’ll be able to get out of debt sooner than expected. After all, reaching your financial freedom isn’t possible without getting rid of your mortgage first.…