Make Precious Time Count: Refinance to Make the Most of Your Life
Many of us don’t need a reminder to live life to the fullest. Most have been touched by personal loss, experienced those anxious moments where we were waiting for the results of medical tests or endured other similar events. Even if you haven’t personally experienced these things, chances are that you know at least a few people who have. These events can cause you to quickly re-analyse your priorities in life. Life is indeed too short, and the unfortunate truth is that you never know when it will be over. Embracing life fully today is important. However, the one thing holding you back from enjoying your life on your own terms is the financial means to do so. After all, while it may seem like a great idea to simply head off on a dream vacation or cut back to a job that allows you to enjoy more time with the kids, you live in the real world where you have bills to pay. The answer to your dilemma may be as simple as refinancing your debts.
Your Home Mortgage
Your home mortgage may be your single largest expense in your budget, so it is worth spending the most time analysing today. Home mortgage interest rates have been near record lows for some time now, and many experts believe they will continue to remain low. This means that now may be an ideal time to refinance your home mortgage. You can consider doing a straight rate-and-term refinance, which means that you don’t pull any equity out with your new loan. For many people who have a decent amount of equity in their home and who have been paying on their mortgage for a few years or longer, this will result in a considerably lower interest rate. You may even be able to refinance your home and pull equity out while keeping your payments around the same amount. This equity can be used to take that dream vacation, go sky diving or do any of the other things that are on your “bucket list.”
Your Other Debts
You may not realize it, but you may actually be able to refinance most or all of your other debts as well. This may include student loans, car loans, credit card accounts and other related debts. You can consider applying for an unsecured personal loan to consolidate your credit card debt into a loan with a low interest rate and attractive repayment terms. You may enjoy a lower interest rate, a lower payment or both on your student loans and car loans by refinancing them. Refinancing these debts can help you to pay your debts off more quickly, find more room in your budget to enjoy life more fully, cut back on your hours at work or a combination of all three.
Your Financial Plan
While you may be ready to start enjoying life to the fullest today, it is important to take a closer look at your finances and develop a sound financial plan before you make any changes. Consider what you want to achieve out of life. Is your goal to scale back your work hours? Do you want to travel? Is your plan to enjoy the finer things in life? For some of these goals, a suitable plan may involve pulling equity out of your assets in a way that is still affordable for your budget. For other goals, a more suitable plan may focus on debt elimination or reducing monthly payments. Before you make any moves to refinance your debts, it is important to ensure that the end result of refinancing will promote your goals. It’s wise to review your refinancing options with a mortgage broker such as Smartline to successfully plan your goals so that you can achieve them at a pace that suits you.
For many people, refinancing existing debts like a home mortgage, a car loan and credit cards may provide the financial wiggle room needed to enjoy a better life. Take time to consider how refinancing can help you, and put online refinancing calculators to use when crunching numbers.