Five Ways Your Mortgage Should Show You Some Love
It’s All About the Equity
Every monthly mortgage payment you send to your home lender is akin to a step closer to home ownership. With each and every step you will gain more and more equity in your home. As the months and years go by, the amount of your home that you own gets larger and larger, giving you financial options you may not even know that you have.
If your home is 50% paid off, you own half of it. That means that if your home is worth $200,000, you have $100,000 in equity that is yours. Use it strategically and you’ll set yourself up for financial success in the future and comfort right here and now.
1. Show the Kids Some Love
Kids are expensive. That doesn’t stop at their eighteenth birthdays, either. We know you want to send little Johnnie and Sally off to college and pay for their weddings when the time comes. With a little help from your mortgage strategy, you can utilize your equity to put your kids on the right paths to success in their own lives. After all, the average wedding costs more than $20,000– and the average 4-year degree costs nearly $40,000 at a state university.
2. Give the House a Little TLC
Home repairs cost an arm and a leg, and updating your home may be a task that you frequently put on the back burner. But since your mortgage is an investment, you must view your home as the cash itself. Make your home desirable– whether you plan on selling it or not– by updating its look, repairing that leaky roof you’ve been putting off, fixing your sinking slab, or getting that central air conditioning unit you’ve been wishing for since you first moved in.
Your equity can help you pay for all that, and when you refinance into a mortgage with a shorter term and lower interest rate, you’ll be saving yourself thousands. That’s not even taking into account your increased property value from the repairs and upgrades you make!
3. A Little Retirement Love
It’s no secret that Americans usually want to retire early. After all, no one wants to spend their entire life working. Strategically using your home’s equity to help you prepare for retirement is one thing your mortgage can do for you. Cashing out some of your home’s equity and refinancing into a mortgage with a shorter term and lower interest rate can not only save you thousands or tens of thousands on interest: it can give you a hefty lump sum of cash to put into your retirement account, where it’ll grow even more by the time you need to actually use it.
4. Practice Self Love
Imagine it now: you sitting on a beach with a tropical drink in hand. Relax, darling: you’ve earned it! Did you know that when you refinance, you can defer your mortgage payments for a month or two so you can put some extra cash in your pocket right away? Indulge yourself with a much deserved vacation, or put that money into your savings account. However you love yourself, let your mortgage help you do it.
5. Break Up Off With Your Credit Cards
We know how you feel about your credit card debt: you don’t love it. I mean really, with the average interest rate being 15% or more (up to 28% if your credit isn’t perfect), who would love credit cards? It’s time to break it off with your credit card bills, don’t you think?
Utilize your equity to pay off those credit cards once and for all and let your mortgage show you the love you deserve. After all, mortgage rates are only a fraction of credit card interest rates, so you’ll save money right there. Not to mention the fact that you’ll increase your credit score by getting rid of all the credit card debt that is bringing it down and you’ll pay only one easy monthly mortgage payment instead of multiple credit card payments each month. Sounds pretty good, doesn’t it?
For more information on how your mortgage can show you some love, call one of our personal mortgage advisors toll free at 877-480-8050 or visit NLC Loans online today.