April 22, 2009

Building Wealth | Mortgage Refinance Options

The past year has wreaked havoc on the United States, particularly in the real estate industry. Many people have purchased homes that they can't afford, banks are foreclosing like crazy, and many people are in a state of financial crisis. But, there is a silver lining, particularly if you are one of the people that didn't buy your home at the height of the bubble (and are therefore still right side up on your house - meaning it is worth more than you owe on it) or enter one of those pesky sub-prime mortgages or adjustable rate mortgages that reset last year.

As I've mentioned before, one way to build wealth is to create more money for yourself. Another way to build wealth is to save money doing what you are already doing. The post today is about saving money doing what you are already doing, namely paying for your house.

If you weren't aware, mortgage rates, because of the housing crisis, are at the lowest rates they have been at in some 20 or thirty years. This means that instead of paying 6-7% interest on your mortgage, you can now pay around 4% (if you qualify, which is easier said than done these days). This can lower your monthly payment by hundreds, even thousands of dollars (and you could continue to pay what you pay now into the principal in your house and pay off your house super fast while saving a bunch of money!).

For example, let's say you own a house in Austin, Texas, and you want to refinance your mortgage to save some cash. If you go in, qualify, and get your interest rate lowered 1-2 percentage points, your Austin mortgage refinance will save you great amounts of money.

But why do it now? Interest rates aren't going to get much lower, and if you have the time you should get it done. Why waste money paying interest that will never help you pay off your house or save for retirement? Get your home mortgage refinanced today and save big time dollars!

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