The Importance Of Working With A Real Estate AgentThe Importance Of Working With A Real Estate Agent

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The Importance Of Working With A Real Estate Agent

After reading a little bit about real estate, I thought I had a handle on buying my own house. I checked out a few listings in my area, and then I put in a few offers. Unfortunately, none of the deals that I tried to set up worked out, which left me a little frustrated. However, as soon as I started working with a real estate agent, things started to come together. I was able to find the place of my dreams and negotiate a fair price. This blog is all about working with real estate agents and brokers, so that you don't have to worry about finding a place on your own.

Refinancing? The Pros And Cons Of Two Popular Choices For Your Equity

When homeowners consider refinancing, they generally have options available that may not have originally been part of their mortgage arrangement. For example, you may have the choice either to get money out of the deal now or to go for a lower overall term. Both are attractive options, and they probably weren't something you could have planned for when buying your home. So, which should you choose? 

The Pros and Cons of a 15 Year Mortgage

Between lower interest rates — one of the best reasons to refinance a home — and a lower amount to be financed, you may be able to switch from a 30 year mortgage to a lower term. The upside to this is that you save thousands in interest and will own the home outright 10 or 15 years earlier than expected. The long-term savings is particularly valuable if you're within a decade or two from retirement. You'd retire with a paid-off home and can put the extra money toward retirement. 

So, what's the downside of this choice? It's likely to result in less of a boost to your monthly budget right now. And you aren't getting the cash benefit up front. If you're refinancing to free up money to pay other bills, this long-term approach may not make enough of a difference to keep things comfortable financially. And if you carry other debt, the interest saved in a shorter mortgage may end up just going to pay credit card debt. 

The Pros and Cons of Cash-Out Refinancing

Probably the most popular move when refinancing a house is to take money out during the transaction. You may find yourself able to "cash out" some of the equity and still end up with a smaller overall monthly payment. A cash out refinance frees up money immediately, boosting your monthly finances by hundreds of dollars in most situations. This could be a life saver if you're struggling with family expenses, taking out student loan or credit card debt, or have an unstable job.

Even if you have no other debt at a higher interest rate, that new influx of money could be put to better purposes. You can maximize retirement contributions, start a taxable brokerage account, invest in a side hustle, purchase rental real estate, or go back to school. It may solve many problems or create a more confident future. Reach out to a professional like Tennessee Home Mortgage for help with home refinancing services. 

So, which of these choices is right for you? The decision is personal. But either way, you will set yourself on a solid financial path for a brighter tomorrow.