As interest rates continue to rise, many of my clients have been reaching out for mortgage advice in navigating this unexpected market. After assessing their overall expenses and budgeting, it’s often apparent that they are managing their finances well given the circumstances.
Currently, the most prevalent approach involves cutting back on luxury items and conveniences such as frequent dining out and long-distance travel. However, if you’re looking to further lower your monthly credit costs, our office can assist you with three effective strategies:
1. Re-amortization: In many cases, clients can extend their payment terms to 30 years, which reduces their monthly obligations. Conversely, in the future, most mortgage holders have the flexibility to make extra payments or increase their monthly payments to shorten the amortization period.
2. Consolidate Credit: If you have non-mortgage credit that carries a balance each month, consolidating it into your mortgage can enhance your cash flow and secure a lower interest rate on that credit.
3. Obtain a HELOC: A Home Equity Line of Credit (HELOC) can be a valuable short-term financial tool for lower interest rates and minimal payments, although it is not recommended for long-term debt positions.
For more information and personalized guidance, please schedule a 15-minute phone consultation by clicking here.