Homeowners should verify their home's equity at least once a year because the two factors that affect it change regularly. Market value changes and the unpaid balance of the home decreases with each monthly payment made on an amortizing loan.
Amortization and appreciation cause the equity to increase in value. Knowing your equity gives you options with regards to refinancing the home and releasing part of that equity.
The equity in your home can offer a financial safety net providing funds for emergencies or major life events, leveraged for investments or home improvements. An annual update on your home's equity will ensure you stay informed about your financial position and opportunities for growth.
Refinancing a residence is a strategic financial move that allows homeowners to optimize their mortgage and tap into various benefits. Whether it's about securing a lower interest rate, consolidating debt, or accessing cash for significant life events, refinancing offers a range of options to suit individual needs. In this article, we'll explore the most common reasons people choose to refinance their homes.
Refinancing a residence offers homeowners a versatile financial tool to achieve a variety of goals. Whether it's securing a lower interest rate, adjusting the loan term, consolidating debts, or accessing cash for life events, refinancing can help homeowners optimize their financial situation and achieve their objectives. Before proceeding, it's essential to evaluate the specific goals, costs, and benefits of refinancing and consult with a mortgage professional to make an informed decision.
There is a cost associated with refinancing a home whether it is paid in cash or rolled back into the mortgage. Assuming you're refinancing for a lower rate, the newly achieved savings are divided into the cost of refinancing to determine how long you need to stay in the home to recapture the cost of refinancing. Determine the break-even point in your situation by using the Refinance Analysis calculator.
Contact us to schedule an annual Annual Advisory and receive an estimate of your home's equity based on a current market evaluation at no expense or obligation.
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Bob is dedicated to offering the finest real estate service available in the Lake Geneva area. He attempts to make each buyer or seller he works with feel like they are the one and only client he has and strives to make each transaction a pleasurable experience with the least amount of problems, stress, and inconvenience to them.