By Troy Toureau, Branch Manager, McLean Mortgage Corporation
Here are a few examples of these additional goals….
- Another objective might be to use equity in the home to free up cash to invest or fund a retirement plan. Sitting on home equity and not being able to take advantage of the tax benefits of a retirement plan could prove costly in the long run. This is yet another reason to be working with a financial advisor. Again and again we have emphasized this concept
- If the present mortgage carries an adjustable rate, the homeowner might move to a fixed rate to experience the security of knowing what their principle and interest payment will be for the life of the mortgage. Many times a cost savings can be achieved through having an adjustable, but there are future risks as well.
- Change in ownership can be effected through refinances. A homeowner might remove someone from the mortgage and deed during a refinance, perhaps because of a divorce. Or they might add individuals to help them qualify or achieve other objectives. For example, adding an offspring may help your child create a credit history and also may help benefit the future estate. We emphasize that advisors should be included in any estate or divorce situation. In this case we are also referring to potential legal advice.
No matter what your financial situation, this four-part segment should have demonstrated that there are many goals which could be achieved through a refinance of one’s home loan. Many of these objectives will affect your long-term financial plan. We suggest you start with your financial advisor at the beginning the process instead of perusing rates on the Internet. This strategy will give you the best chance of making the transaction as beneficial as possible with regard to this long-term financial plan.
If you have any questions please contact Troy Toureau of McLean Mortgage Corporation.