Can Refinancing Your Home Help You Meet Your Financial Goals?

What kind of financial goals have you set for yourself? Saving for retirement? Paying off a car? Maybe just padding  your savings account? Financial goals help lead to better financial health, which means breathing a little easier and dealing with less money-related stress.

There are many ways you can reach those financial goals, like cutting out frivolous spending or making auto deposits from your paychecks, but there are also plenty of opportunities to work toward your goals with a little help from a refinance.

How Does It Work?

The goal of a refinance varies for every individual but should always be focused on short and long term goals. Refinancing always allows borrowers to pay off the amount of the current mortgage, and start making payments on the new mortgage. While many borrowers shop for a loan with a lower interest rate, this is only one of many factors.

Every situation is different, but it is common for a refinance to make life easier by lowering monthly payments, lightening  financial loads and/or allowing money  to be redirected into savings or towards accomplishing other financial goals.

What If I Don’t Have Goals?

It’s easy to set financial goals. Take a look at your current situation, and think about where you want to be. Then start saving to reach that goal. Here are a few suggestions:

College Fund: Do you have kids? Do you think those kids might go to college someday? It’s never too early to start saving for today’s rising education costs.

Take a Vacation: Have you always wanted to visit somewhere, maybe overseas, and never had the opportunity? Start saving and then book that dream vacation.

Pay Off Other Debts: If you have other debts outside of your mortgage, any money saved can be put toward paying off debts. Imagine the additional money you could have once other debts are paid off.

Invest: Talk to a financial planner. Whether it’s a retirement fund or stocks understand where you might be able to invest your money,. There are plenty of investment opportunities out there, and one may be right for you.

Save for Retirement: There’s a lot of talk today about people outliving their retirement funds. With extra money, you can put back more so you can live your retirement comfortably.

Emergency Savings: Of course, sometimes things just happen. Having a nice nest egg as an emergency savings fund can help you get through those hard times.

Refinancing can help you meet financial goals. A professional Loan Advisor can help you determine what mortgage programs to consider by building custom loan options according to your goals.