With all the buzz on current low interest rates, this is a hot question! Well, I’m here to give you an answer you won’t find in the mainstream press nor will you hear about it from mortgage lenders. But the truth is…NO, you probably shouldn’t refinance. There’s a much better solution!
Now, before I tell you what it is, let me just say there are some exceptions to consider. If you are under major financial stress, and your only solution is to lower the mortgage payment to get you through the month, then I would probably recommend you refinance. By that same token, if you have a balloon payment or an adjustable rate mortgage that is heading in a direction of financial hardship, then again….I would go ahead and recommend you refinance.
However, if you are already in a fixed rate program (or an adjustable you can live with), there is an exceedingly better way to reduce the interest payed on your mortgage. What’s more, you can pay off the home is as little as 1/3 to 1/2 of the time.
Studies have shown that most people who refinance their mortgage choose not to reduce their term (and even if they did, I would still wager that there’s a better way). In addition, a large percentage of people move every five to seven years therefore starting the process all over paying all that up-front interest again and again. As a result, they typically end up paying more interest (whether it be the same house or different houses) than they would have had they just left things alone. And even if they did stay in the same home for a long period of time, they would have done much better had they known about this better method to the interest madness.
Introducing the The Money Merge Account program with United First Financial. As a Real Estate Consultant, I’ve done a lot of research on this topic, and it’s by far the best program I’ve come across in the financial world. Though challenging to explain, the program in essence acts as a financial software wizard which computes in real time the fastest way to zero based on your own personal income and expense budget. Run by math engines, it takes the simple banking concept of money leveraging and interest cancellation, and utilizes it to it’s full potential to achieve maximum results in the quickest amount of time. It literally knows the optimum amount and optimum time to shift or transfer funds to strategically payoff all your debts with the greatest amount of savings! The financial dashboard works as a guide only…You are always in control of your money! In reality, it’s all about the math! And it works! Even your best accountant would be hard-pressed trying to compute and track all the variables and algorithms associated within the inner workings of this system. You could never achieve the same kind of results trying to accomplish this on your own….if so, I would have done it. It’s also very user friendly and automatically adjusts to any changes that occur in your monthly budget.
If you’d like more information on the product, click on the above link. Yes, I am an independent agent for the company, but it’s a side venture I really don’t spend a lot of time on (too busy with my Real Estate Business). I became a rep only as an after thought because of my own success with the program. I cut my own mortgage term in half, and remember, I did it without refinancing, without increasing my monthly mortgage payments, and with little to no change in my personal lifestyle. I’m currently on track to save over 125K in future mortgage interest. I encourage everyone to take a look at this…it’s a phenomenal program.