Sooner or later, every homeowner takes a hard look at the value of their home and how it can be used to accomplish a financial goal. “People investigate refinancing their homes for a variety of reasons,” said Marc Coons, the Paso Robles home refinancing consultant and lender, “a home is an asset and there often comes a time when that home can contribute to someone’s dreams and financial goals.”
Refinancing a home can help someone take advantage of lower interest rates, buy an investment property, pay for a major remodeling project or other improvements, buy a smaller retirement home, or any other financial goal.
The process is basically refinancing to pay off the current loan and getting a new loan at current rates and for many, getting some cash out of the home that can be used for:
Lower current interest rate being paid on the original loan
Lower monthly payments
Have access to cash for investing, remodeling and other upgrades
Access cash to buy a smaller, vacation or retirement home
Consolidate debt, including medical expenses
Start a business or achieve any other financial goal
There are some important things to consider when using the home as a financial asset and a consultation with Marc Coons, the Paso Robles home refinancing consultant, can help the homeowner reach the best decision.
A refinancing loan is basically, buying the home one lives in at a different interest rate for a different amount of money and maybe a different life of the loan. When someone gets a loan to buy a home, the lender pays the seller, and the home buyer pays the lender in monthly installments. When refinancing, the owner of the home is theoretically the seller who is selling the home for a new price to him-or-herself.
A refinance may provide the extra funds needed to accomplish the financial goals. Other options, instead of refinancing include:
A home equity loan
A home equity line of credit (HELOC)
Either one of these options may be a better solution than refinancing.
A home equity loan is also known as a second mortgage. The loan is based on the difference between the current market value and the mortgage balance and pays out a lump sum.
A HELOC is a revolving line of credit based on the equity in the home.
Whether to choose to refinance with a new loan, or one of the home equity solutions depends greatly on one’s financial goals. For example, if the goal is to simply reduce the monthly payment or take advantage of a lower interest rate, refinancing and getting an entirely new loan might be the answer. If the goal is to create a cash flow to take advantage of financial opportunities, one of the equity loan options might be the best choice.
It all depends on the home owner’s goals and financial circumstances. A lot of time can be wasted shopping financial institutions to refinance a property and there is always the risk of winding up with a loan that doesn’t do the job.
Consulting with an expert, such as the Paso Robles home refinancing consultant, Marc Coons is the top solution to being sure the home owner gets the best leverage from the equity in his or her home.
Regardless of the reasons for refinancing a home, Marc is going to make the process as easy as possible. With access to multiple lenders, Coons and his team of professional loan consultants have the ability to quickly identify lenders that are interested in meeting a variety of home refinancing requirements.
Recognizing that each customer has unique needs, the team finds the right lender to refinancing. Backed by Caliber Home Loans that generates $1.73 billion in sales, Marc and his team ensure a smooth loan process
Source : https://www.prweb.com/releases/top_strategies_for_refinancing_a_home_from_the_paso_robles_home_refinance_consultant/prweb18481254.htm