After paying several thousands of dollars on the root canals on my upper teeth, my dentist told me that they had to be pulled. He told me that the dentist that did the work didn't do it properly and that all of the teeth were infected. After I collected myself, we started discussing the cost of the extraction procedure and the cost of the dentures. I knew I couldn't pay for all of that out of my pocket and he explained the dangers of allowing dental infections to fester. I quickly learned about financing dental procedures. If you are in a similar situation, go to my site to learn about your options of financing dental work.
If your finances need help, consider refinancing your mortgage. Refinancing your mortgage is a terrific way to save thousands of dollars in interest costs over the course of the loan. You can even decrease your monthly payment. If you need to consolidate debt, you can complete a cash-out refinance to get all of your debt at an affordable interest rate. Before making the decision to refinance, take the time to do these three things.
1. Determine Your Goal for the Refinance
A mortgage refinance can help you accomplish a plethora of financial goals. However, you need to figure out what you want to obtain from the refinance so that you know what terms are best for your needs.
For example, if your primary goal is to minimize your interest and pay your home off as quickly as possible, refinance your mortgage into a product with a shorter term. Many individuals go from a 30-year mortgage to a 15- or 10-year mortgages. Mortgages with shorter terms have lower interest rates than longer-term options.
When your main objective is to reduce monthly expenses, refinance your mortgage into another 30-year loan product. This takes your remaining balance and spreads it out over a new 30-year period. Though this alternative has higher interest costs, the lower payments can be valuable for obtaining a positive monthly cash flow.
2. Check Your Credit
One of the deciding factors that determines whether or not you are approved for the refinance is your credit history. Once you are approved, your credit history is used by your lender to help calculate your interest rate.
Take a moment to look over your credit report. Make sure all of the information is accurate. If you see negative information that you know is incorrect, you can dispute it. Handle any judgments or past-due accounts so that all of your accounts show up as being up to date on payments.
It makes sense to fix any credit problems before you apply for the refinance, since your credit rating plays such a significant role in the approval process.
3. Calculate Your Break-Even Point
Every refinance comes with closing costs. It is smart to determine how long it will take for you to recoup these costs so you can decide whether the loan is the right alternative.
For example, if your closing costs are estimated to be $6,000, and the refinance will reduce your monthly payment by $150 a month, it will take you 40 months to recoup these closing costs (divide $6,000 by $150 to get this figure). In this case, if you only plan on staying in your home for two or three more years, refinancing does not make sense. In cases where you plan to stay for 5 to 10 years, refinancing is a smart choice for decreasing your monthly expenses and interest costs.
Share21 October 2016
