The holidays are an expensive time of year, when people stretch their budgets and rely on credit cards to help finance their festive giving. There is another way you can make the most of the holiday season…by saving money on your mortgage with a refinance. Here are three ways to do it.
1. Take cash out
A cash-out mortgage refinance lets you use the equity you’ve built over time and gives you cash in exchange. You just add what you take out onto your new mortgage principal. The money you take out is yours to spend as you please – including holiday bills. Cash-out refinances usually offer lower interest rates than credit cards.
2. Get a lower rate.
As all-time low interest rates continue to hover, homeowners can give themselves the gift of savings by refinancing their mortgage to a lower rate. This could create hundreds of dollars in savings every month by decreasing the monthly mortgage payment.
3. Shorten the term of your loan.
Refinancing a 30-year mortgage to a 10-, 15- or 20-year loan may not necessarily save you money this holiday season, but it allows you to pay off your home faster – with a higher monthly payment – saving you interest in the long run.
There is another benefit to refinancing before the holidays. During the refinance process, borrowers can sometimes get at least one month without having to pay their mortgage payment.
Refinancing isn’t a one-size-fits-all solution. It’s important to work with a lender who can help you determine if refinancing is worth it for your particular situation. For over 25 years, Luxury Mortgage has helped homeowners get a great deal on their home refinancing. We’ll help you explore your options.
We're dedicated to helping borrowers find the right home loan program for their situation. Contact us today for a free quote and consultation.
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