Information for Borrowers
INFORMATION FOR BORROWERS
WOULD YOU LIKE TO HAVE A PILE OF CASH? I know that I would. If you have equity in your home, you may be sitting on a huge pile of cash and not even realize it. Here are some of the types of cash that may be in your home.
1. If both spouses of a married couple are age 62 or older, a reverse mortgage could be a ticket to solving their fixed income blues or providing extra income to travel or enjoying a vacation home or driving a new automobile. Here's a little known secret about reverse mortgages. They can even be used to purchase a new home without making any payments.
2. What is the interest rate you are paying on your home loan? There may be substantial savings to be gained by refinancing. For example, if you owe a balance of $100,000 and your interest rate is 8% with ten years until payoff, you will pay about $45,500 in interest. If you refinanced at an interest rate of 5%, you would pay about $27,200* in interest over the same period. That represents a savings of almost 50% in interest or $2,720 per year.
3. Do you have credit card debt sucking money out of your pocket every month? A cash out refinance might be the solution you've been looking for. A cash out refinance is where a homeowner refinances their home for an amount greater that the balance on their loan and "takes out" the difference in cash. It might be possible to refinance for a longer term so that the monthly payments remain approximately the same. Its like having your cake and eating it too.
4. Have you ever heard about a "HELOC?" That is a "Home Equity Line of Credit" and the money it generates for you can be used any way you want, when you want. The great thing about a HELOC is that it is based on the equity your have in your home. As you pay down the principal, the amount of money available on the HELOC increases. When home values increase, the amount of money available for the HELOC also increases. Your use of the money costs interest, but the interest is deductible along with your regular mortgage interest.
5. Want to know where you stand? Get Prequalified Today; Click Here
They're lots more ways to refinance and lots of benefits to be gained too. You can learn more about these programs and others that are available from Mortgage Resource Group, where "Your home is our business."
These programs are not available to everyone, age restrictions on reverse mortgages and credit/budget requirements may apply on certain mortgage products. Before making any decision about refinancing carefully how the product and/or program will affect you.
*The latter figure is for a zero cost refi as closing costs would reduce the realized savings.
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