I’ve owned a house for a number of years now and have been experiencing some real financial difficulties lately. I have a son who is going to a great school right now, but it is very expensive. If I can’t turns things around soon I might have to face foreclosure down the road and this would be unacceptable. I have to find a solution to my money problems sooner than later.
Recently through some research I discovered various ways to refinance a mortgage to make it easier to pay, or to at least get some extra cash to help during a difficult time. I’ll take a moment to discuss a couple here now.
- Cash out refinanced mortgage is when you replace your mortgage with the max amount allowed for you to borrow against your home. You get this cash up front and it’s based on the equity you've built while owning the home and paying the mortgage. It is similar to a home equity line of credit.
- A home equity line of credit is similar to cash out in that it is based on the equity one has built up in their home by paying off the mortgage. The more principal that has been paid off the better your line of credit can be. This credit can be accessed at any time similar to other lines of credit, and, like cash out refinancing, it is tax deductible!
- The housing market has changed dramatically over the past few years. Currently there are many programs available through the government to help homeowners keep their homes. Refinancing an FHA mortgage is suitable for all income levels and often requires little cash upfront for a down payment. Contact Real-Estate-Yogi because there are even solutions available for home refinancing with bad credit.
If financial problems have gotten you down and you need a little bonus of money to get you through a difficult period, explore the options available through cash out refinancing programs or a home equity line of credit. What will you do with your money? Many people take this money and reinvest it back into their home. Some make investments in stocks or real estate, while others use it to help pay for a second home. Myself? I’m going to use it to help pay for my sons college tuition, and I also plan to us some of it to pay off other debts. It will set me back a little bit on paying off my cash out mortgage refinance entirely, but it will be worth it to feel financially secure again and back on track.
For people who wish to refinance their existing mortgage simply to make it easier to pay, there are many government assistance programs available. Programs such as HAMP allow for families facing foreclosure to renegotiate a new mortgage with their lenders. But before you even get close to foreclosure you will want to explore refinancing through other means. It will be better for you in the long run. The longer you don’t address your financial problems head on the more danger you will be towards losing your home and ruining your credit score. It can be difficult with bad credit to find good mortgage refinancing options.
However, even with bad credit, options are available. A great place to start the process is online at www.real-estate-yogi.com. They have access to a wealth of real estate information as well as a national database of agents who are available every day of the week. Call 1-800-987-1397 for a free consultation.