Financial freedom is a top goal for most people but paying off debt can be daunting for some homeowners. Spare cash is sometimes hard to come by, as school loans, car payments and credit card debt are common impediments to reaching financial goals. Budgeting for daily necessities can be challenging enough, let alone setting money aside for an emergency savings fund. For these reasons and others, refinancing your home may be a great option.
Refinancing might save you hundreds of dollars a month. You can then use that money to start paying down debt and saving for the future. At Fairway, we clearly explain your refinance options to you and work to make the experience a great one. I will review your credit report with you, discuss your options and help you make the right choice.
Once You Have Refinanced
It is important to prioritize the way you are paying off debt. For example, carrying a long-term mortgage at a low interest rate might help you save money for retirement, build a college fund or even create an emergency fund. Having the peace of mind that you can weather a financial emergency is reason enough to work hard on budgeting and saving your money for that “rainy day” cushion.
Have a plan, like the following one, for paying back debt:
- Analyze how much money you’ve spent in the past three months to determine essential versus non-essential spending.
- Create a plan for the next three months, addressing the debt you wish to pay down and the amount you hope to put into savings.
- Build a workable budget that you can stick with and monitor your spending each week.
Interest rates are currently ideal for refinancing, and I would love to discuss this opportunity with you. Declaring independence from debt is possible, and this is the perfect time to make a significant difference in your financial future.Tags: Debt