You love your home. You’ve made it your own and have lots of happy memories there. But maybe it no longer suits you and your family as well as it did before.
Maybe it’s too small or lacks the features you need — or you might simply want something different. Either way, it’s no longer the dream home it once was.
When this happens, you have two options: buy a new place or remodel your current one.
Not sure which is best for your situation? Here are some pros and cons of each:
Planning to make a move?
On the plus side, you get a new home that meets all your needs — and maybe even a better location. And you won’t be stuck in a construction zone for weeks or months on end.
But on the other hand, you’ll probably need to deal with selling your house and buying a new one simultaneously, which can be complicated. You’ll need the money for a down payment, closing costs and the actual move.
Think remodeling is the answer?
Advantages of remodeling include staying put and avoiding the time, cost and stress of moving. You might increase your home’s value as well, which could mean more profits if you decide to sell later.
The downside? Renovations aren’t always quick or easy. You might be surrounded by construction, contractors and materials for months. It also has its limits — you may not be able to achieve everything you want.
Though both routes have their pros and cons, the right choice depends on your budget, the real estate market and your family’s preferences. If you’re not sure, reach out for guidance. We can also discuss your financing options for a remodel or a new home.
If you’re a homeowner, you might think that all the recent talk of low mortgage rates doesn’t affect you. But that isn’t true — they may be your key to savings.
Even if you had a sizable down payment or received a competitive interest rate at the time, refinancing your home now could mean saving thousands over the life of your loan. Ask yourself these four questions before making up your mind:
- Have your finances improved? If you have a better financial profile now than when you bought your home, you may be able to make a larger monthly payment with a lower interest rate, speeding up your mortgage repayment. If your credit score has improved or you have a higher income, this applies to you.
- How much have interest rates dropped? Mortgage rates fluctuate with changes in the economy. You may be able to obtain a more cost-effective mortgage today than when you first purchased the property, even if rates have only dropped by a percentage point.
- How much will refinancing cost? The process will likely cost you a percentage of the amount you borrow. Remember the application and appraisal fees when you bought your home? They apply here too. Another thing to consider: If your home interest payment is a tax deduction, a decrease in your interest amount could lower that deduction.
- How much longer will you be in the home? If you’re not planning to stay in your current home very long, and therefore won’t need to pay off the mortgage, refinancing shouldn’t be your top priority. Spending the time and money on that process won’t pay off like it would if you stay in your home for another 10 years or more.
Are you ready to refinance? Do you have specific questions about your situation? Reach out today.
If you’ve got a mortgage, you probably want to pay it off sooner rather than later. But how do you do that when you’re busy just getting by? More importantly, how do you do it while also saving for the future?
It takes the right planning, tools and mindset. But paying off your loan and saving for retirement at the same time is an attainable goal. Start with these steps:
1. Use windfalls strategically. Are you expecting a bonus or a big tax refund? Don’t spend it all on new clothes or a fancy vacation. Instead, use that windfall to get one step closer to your goals. Put at least some of the money in a high-interest savings account, or use it to make an extra mortgage payment.
2. Make realistic savings goals. Everyone would love to have millions in the bank, but that isn’t always possible. Instead of shooting for the stars, set realistic, incremental savings goals. That way you can reach them while still supporting your household.
3. Create a budget. Planning where your money goes ahead of time can be super useful. You should create an overall budget, mapping out how much to spend on items like entertainment and groceries. Again, make sure the budget is reasonable for your family’s needs.
4. Find helpful tools. You don’t have to go it alone. Money-saving tools and budgeting apps can help you cut costs and save more. Best of all, they’re conveniently available on your phone.
When it comes to saving and paying off debts, staying the course is crucial. And you might even be able to make it easier by refinancing your mortgage. Reach out today for more information.