Hey it’s Nicola. I was recently featured in a Bankrate.com article, “What to Do With Your Mortgage Refinance Savings”. With me having a background in real estate for more than 20 years, I was able to share what are some of the ways you can use the equity in your property. It’s a great way to even jump-start your financial security in these tough financial times.
Below is an excerpt from the article where I share the top 3 things to do if you should refinance. Make sure you click the “read more” link to review the entire article. Enjoy!
Excerpt From Bankrate.com Article:
“Saving more money each month can have a big impact on your overall finances — and one way a lot of Americans are trimming their expenses these days is by refinancing their mortgage. Read on to find out when a refinance may make sense for you, and what you can do with the money you save by doing it.
When is it a good idea to refinance?
Many homeowners look to refinance when interest rates dip lower, with the goal of one or more of the following:
- Lowering their monthly mortgage payment by cutting the interest rate
- Reducing their loan term
- Consolidating debt
- Getting cash from their home’s equity
“It makes the most sense when the new loan will save or make the borrower more money,” explains Nicola Smith Jackson, an Atlanta-based financial advisor and wealth strategist. “In these challenging economic times, stabilizing or improving one’s financial security should be a main focal point.”
1) What to do with refinance savings?
If you decide to refinance, it’s important to have a strategy to make the money you’ll ultimately be saving work for you. Here are some ideas on how you can leverage that extra cash:
2) Start a business
If you have a goal to start a business, consider using your mortgage refinance savings to help fund the new venture. Look for a path with low startup costs, if possible.
“This is an opportunity to create your own financial outlook without waiting on anyone else to decide when you can go back to work,” says Smith Jackson, citing the coronavirus-driven layoffs.
3) Build your emergency savings
Having ample liquid cash in reserve can offer you peace of mind when the unexpected happens — think job loss, illness or a big car repair.
For an emergency fund, “a three- to six-month savings is no longer enough money with our current economic conditions,” says Smith Jackson, so “make the goal 12 to 18 months.”
A cash-out refinance can help you start or add to your emergency savings.”
NOTE: For the full Bankrate.com article, please click here to review more.