refinance

Refinance or Buy Your Home NOW!

posted in: Mortgages

I have already blogged about why you should refinance or buy your new home now in previous articles and blogs. With home values on the way up and interest rates on the way up over the next 12 months, there is no reason to wait.  In this blog, I am going to show you why locking into a better rate and program instead of waiting is the smart choice. The loan officer at 7th Level Mortgage can show you and will take the time to help you make the smartest, the wisest choice for your home financing, whether it is a purchase or a refinance. Here are some scenarios that may sound familiar to you and what the solutions can be.

Scenario #1

I am a first-time homebuyer, have limited cash on hand, and am a veteran of the military. First of all, thank you for your service. It is a common problem for many of our veterans to not have all the cash needed to close or purchase a home of their own because they are constantly on the move with different deployments. That makes it very difficult to save money, especially with young families. The solution is a VA loan. In some cases, you can buy a home with no cash down and some of the fees can be financed into the loan itself. If you already have a VA loan and need to cash out equity to pay off other bills, put money away for an emergency, or for other purposes you can borrow up to 90% of the home’s appraised value. With home prices on the way up, why not take advantage of the benefits of a new VA cash-out refinance?

Scenario #2

I have an FHA loan and am happy with the payment. With home values on the rise, you should look into refinancing into a conventional loan without the monthly mortgage insurance premium. Why give your hard-earned money to your lender when you can use the money for your own needs?  For example, suppose you have a loan amount of $300,000. The monthly mortgage insurance premium is $246.00. Over twelve months $2952.00 is what you would needlessly spend. Even if you wait out the 11-year mandatory time frame for the monthly mortgage insurance premium to be canceled, you are still underwater. Can you afford to wait or potentially lose hundreds if not thousands of dollars? I suggest you call 7th Level Mortgage today!

Scenario #3

I have a conforming, conventional loan and have never missed a payment. I am paying the minimum monthly payments on my credit card bills, but can’t seem to make any headway as far as reducing the balance due. The reason this is happening is that the majority of your credit card payments are credited to the interest and fees you accrue every month on the unpaid balance. The solution is for you to refinance your home, pull out the equity to pay off those credit cards, give yourself a raise EVERY MONTH, and put the balance of cash into your savings account, 401K, or other retirement accounts.

Scenario #4

My parents are up in years and instead of moving them into a nursing home, I want to add on an in-law suite so I can take care of them. By using the equity in your home you can, provided the zoning officials and contractor meets muster with the plans and specifications for the add-on, give your parents a much deserved and happier retirement. This will give them security knowing you are there and will give you peace of mind because you won’t have to worry about someone else taking care of them.

Finally. imagine all the possibilities. For those of you with children and will want to send them to college, cashing out equity for their education is a much better idea than trying to obtain student loans. What about your older teen who wants to buy a car. If you cash out equity in your home, the car loan just became tax-deductible. Automobile loans are not tax-deductible, but, the interest you pay on your mortgage is! Be sure you call 7th Level Mortgage today. The team there is ready for your call and will answer any questions you may have.