Money Savers Part 5: Mortgage

money-savers-part-5

I don’t think anything makes me feel more “adulty” than talking about mortgages. Y’all, it’s just weird. Here I am, 28 years old with a mortgage to think about. I’m not even sure how that happened. But it did, and that thing has to be paid. Bummer, right? Luckily, we have been put in a circumstance that is going to be greatly beneficial to us and I pray that you may be in the same boat!

Exciting Time to Sell!

Don’t get worried, I’m not announcing on today’s post that we’re selling our house. But if you are in a place to consider selling your home, now could be a good time to look into doing so! For those of us who bought our homes within the last 5 years or so, we’ve gotten into a pretty exciting situation. When we bought our house in a Dallas suburb, the market was perfect for new buyers. Our interest rate was low and we were able to afford a home we loved, not just settle. We were thrilled!

I’m not sure about where you live, but our area has seen a major increase in value in the last 3.5 years we have lived here. This might be tough news for someone looking to buy, but it means our home is worth far more than we bought it for! After first hearing this, we were planning to sell and reap the benefits of our major equity. Then, a friend mentioned a different option to my husband.

Cash-Out Refinance

I’m not going to go into crazy detail here because this is very “adulty” business and frankly I don’t think I know enough to chat about it all. (My husband is handling this part, ha!) Basically, what we’re doing with our home is a “cash-out refinance”. We are refinancing our house for more than we currently owe and getting a portion of our equity. In some cases, this might raise your monthly payment. For others, it won’t. (We are still saving on our monthly payment. If you’d like to know more about that, I’d be happy to chat with you!) We will then use this equity to add to our savings, pay off a hefty chunk of student debt or buy another car since we’re currently a one-vehicle family. (Stay tuned for my next post to read more about that situation!) Regardless of which route we take, we have been blessed with an opportunity to use our home to help relieve some of our debt. Who would have imagined that?!

If you currently own a home, this might be worth looking into! (Especially for our friends who live near us – you won’t regret checking it out!) Whether you choose to sell, refinance, or find a different solution, it’s always nice to know what you’ve got!

 

 

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