Let's take a look at each refinance situation.

To Obtain a Lower Rate
When interest rates drop, in most cases, you may want to consider a refinance to lower your cost of money borrowed through a lower interest rate.  The long term savings can be significant to furthering your ability create wealth if you take the savings and invest it to take advantage of the power of compound interest that investments provide.  A simple monthly savings of $50 invested monthly at a compound interest rate of 6% can yield $50,526 over 30 years.  Would you rather pay the lender an extra $18,00 in interest expense or take the $50, invest it and turn it into $50,526?   If you are not sure about interest rates, let my team watch your mortgage for you.  When rates drop, I will give you a call and discuss options with you.   There are no cost, limited cost, and full cost options presented to you.  You decide which is best for you, if any.   Learn more about my free rate watch program.

New or Changing Loan Programs
New loan programs may come out or existing loan programs may change that might allow you to lower the cost of the money you are borrowing from either a lower interest rate or the removal of mortgage insurance.   Having a working relationship with your mortgage professional will allow you to keep in touch so you know when programs change which could put you in a better position.  If you do not currently work with a mortgage professional. share the details of your loan with me and I will notify you if an opportunity comes up that will benefit you. 

To Consolidate Debt
From time to time, you may find yourself in a situation where you have accumulated more debt than you would like which is hurting your monthly cash flow.   This could be from unexpected medical expenses, home improvement projects that got out of control, or overspending by charging up credit cards.  Whatever the circumstances are, the goal is to consolidate that debt using equity in your home to improve your cash flow by providing you an overall lower monthly payment.   By doing so, you are taking debt that was not tax deductable and making it a tax deductible debt.  You are also improving your cash flow, so if you took part of the monthly savings and paid it back to the mortgage, you can pay off the home much faster.  You can also invest the improved cash flow to take advantage of the power of compound interest to create wealth.   With each debt consolidation client, I present highly detailed analysis so you can see the impact of your existing cash flow and debt compared to a new situation with improved cash flow and the benefits that can provide. 

Home Improvement / Purchase a Second Home
After owning your home for a period of time, you more than likely will have accumulated a significant amount of equity.   You may want to improve your home, put on an addition, or buy that vacation home you have always wanted.   Your home equity is an excellent source to secure funds to pay for improvements or to use as a down payment.   If you use money from your investments accounts, you are taking that money out of circulation which is preventing that money from compounding and earning a rate of return.   When using equity, you are using money that can provide you tax benefits. 

Divorce
The only method to remove an ex-spouse from the home and relieve them of their financial responsibilities from the mortgage associated with that home is to refinance.  The sooner that a couple can agree to disagree and take care of the home, the better off you will be financially.  If the decision is to allow one spouse to keep the home so children can remain in a stable environment regarding neighborhood, friends, and school, then the sooner the refinance is completed the better off both spouses will be.   If the refinance is prolonged, you could be subject to being forced to sell the home if credit issues and mounting debt are a result of a non-amicable divorce process. 

The first step with any refinance is for me to understand your circumstances and reasons for refinancing. Then a thorough analysis can be made so you can make educated decisions as to the best loan program that will help you reach your goal.  All refinance solutions I provide are in writing so you can review them and make informed decisions.  Upon reviewing the analysis, you may find that a refinance does not make sense. 

If you are considering taking out new money for the purchase of or refinance of residential real estate, and you would like to ask some questions, I  am available to speak with you in detail by appointment only.  Please contact my office to set up a time to speak at which point we can decide if a more in-depth personal visit would be beneficial.