3 Things You Never Knew You Could Do With A Mortgage
Are mortgages sexy? Absolutely not.
But.. There are a few things you can do with a mortgage, that is sexy.
You might think, “Lower my mortgage payment!” and although that is attractive, this blog will cover the strategic mortgage strategies that most people aren’t aware of.
The ones that could make your home… Dare I say it? ..Sexy.
1. Upgrade the look and feel of your home
For example, you may have purchased your home a couple years ago with the intention of renovating the kitchen to make it your “Dream kitchen,” then life got in the way.
You were never truly able to save up the funds needed to upgrade your kitchen, so you continue doing your best to save until one day you have enough for the renovation.. Sometimes, this day never comes.
However, the good news is.. You don’t need to put the money away yourself.
You can refinance your home with the power of a renovation loan. This type of loan would allow you to renovate your homes kitchen, bathrooms, flooring , and even plumbing should you ever need it.
Now picture your friends coming over for a glass of wine and upon arrival, they remark at how beautiful the kitchen is and how they want to do the same with their home. All the sudden, your “new” home is the talk of the evening.
Now that? That’s sexy.
2. Add a pool
Don’t get me started on this one. We’ve all been there.
You take a trip to the grocery store on an early Sunday afternoon.
You’re loading up the car with groceries as you’re baking in the Florida sun. As nice as it feels, there’s something missing.
You finally head home and in attempts of saving time and energy, you try to muscle every single bag of groceries in each of your fingers. Miraculously, you pull it off.
By the time you’re finished, you’re craving a nice refreshment. So you grab something to drink and think… It sure would be nice to jump in a pool right now.
Sure, there’s water-parks all around town. Maybe even a community swimming pool. But you want to relax, you don’t want to drive. You don’t want to move. You want to relax.
That’s what having a pool in your own backyard does for you.
Now picture the pool in your backyard...Now that’s sexy.
3.Payoff high-interest debt
We’ve all been here too right? Too much month at the end of the money.
The good news? You’re not alone.
More good news? If you bought your home in the past few years, its highly likely that your home has appreciated and you’re sitting on (almost) free money.
Simply put, even if you didn’t add a pool or upgrade your kitchen, your home has still, likely increased in value from when you purchased it, until now. This is appreciation.
The obvious benefit of this is if you sold your home you can walk away with the difference between what you owe and what you sell it for. (Minus the costs of selling a home)
But perhaps, you don’t want to sell your home. You just want some extra spending money at the end of the month to go out on a nice date or take the family out for a fun day at Disney.
That’s where a cash-out refinance becomes sexy.
Instead of having to list your home, find a new home, and go through the hassle of moving.. You don’t have to change a thing!
All you have to do is contact your favorite loan officer for a cash-out refinance. This allows you to pull the equity you’ve earned through the appreciation of your home to pay-off high-interest credit cards and other debts.
The balance on your mortgage would increase to the amount you’ve pulled but there’s a HUGE benefit to this.
You see, typically every $10,000 of a mortgage loan will cost you about $50/month. But $10,000 on a credit card may run you $200-$300/month. This would provide you a monthly savings of $150-250/month!
How many more date nights could you have per month with an extra $200?
Now that’s sexy!
Please keep in mind, for all of these amazing options; You must qualify for these programs and the programs may change. For more information on qualifying, reach out to your favorite Home 1st Lending Loan Officer here to schedule a call.
-William Butler, Director of Business Development
Home 1st Lending | 315 E Robinson St, Suite 325 Orlando, FL 32801 | NMLS# 1418