Payday Loan Power

About Me

Payday Loan Power

Payday loans sometimes get negative attention because they can be expensive. But when I needed cash fast and couldn’t get it anyplace else, it was a payday loan provider that was there for me. I was able to get the cash that I needed to have my car repaired when I couldn’t have afforded it otherwise. Without my car, I risked losing work because I wouldn’t have been able to drive. I live in a rural area without a great bus system, and my job description sometimes involves driving. Not taking that payday loan would have cost me a lot more than taking it did. I was able to go to work, earn the money to pay it off, and move on with my life. That’s the power of payday loans – they allow you to go on living your life, even in the face of a financial emergency.

 

Should You Refinance Your Home?

8 March 2023
 Categories: Finance & Money, Blog

Share

The average length of mortgages in the United States is 30 years. Sometimes the terms that appealed to a homeowner when they initially got the loan don't seem so appealing at a different stage in their life. Homeowners may want to look into refinancing. When homeowners refinance, they apply for a new loan with better terms. The process costs money, but it can lead to serious savings. Read more to determine if you should refinance your home.

When Should a Homeowner Refinance?

Lower Interest Rate

Lenders determine your mortgage's interest rate based on your credit score, down payment, loan amount, and the type of loan. Interest rates also change based on the economy. Over time, your financial situation may qualify for a significantly better interest rate at the right time. Take advantage of the opportunity in this interest. A lower interest rate will result in a lower total amount.  

Shorten the Length of the Mortgage 

In some situations, a lower interest rate can allow a homeowner to shorten the length of the loan. This option is ideal for lenders who are eager to pay off their house and put the mortgage into savings. Homeowners should work with a mortgage broker to determine a new schedule that makes financial sense for the homeowner while offering the most savings. 

Switch From ARM to FRM

Adjusted rate mortgages (ARM) can change with little notice. These rates usually start low and then increase and decrease volatilely. When mortgage rates are low, this can be a good option, especially if the lender is almost up with the loan. Flat-rate mortgages (FRM) stay consistent but usually start higher than ARMs. FRMs make the most sense when a homeowner just started the mortgage. 

Receive Emergency Funds 

Sometimes people take out a mortgage on their house to receive emergency funds after an unexpected expense. When you refinance, you get access to some of the capital you've already put into your home. Refinancing your home to access funds can put homeowners into a worse situation if they don't consider all factors at the beginning. 

How to Refinance Your Home Mortgage

To refinance your home, get your finances together. Organize all monthly bills, incomes, and assets to present them to the lender. Apply for a new mortgage with a reputable financial institution. They will return with an offer. You can decide whether to move forward or not. Do not move forward unless the savings will outweigh the initial cost of the refinance. 

Contact a local refinancing service to learn more.