Refinancing to Revamp Your Finances

By Karen Lawson
Local Lender Columnist
Aug 17, 2007
You're unsure about refinancing. If you have concerns about rising rates and decreasing housing markets you're not alone. If you're carrying balances on credit cards with high interest rates, refinancing can help reduce the cost of your debt. If you need cash flow, refinancing to a mortgage with a low initial rate can free up cash. When considering refinancing, you'll want to look at the past, present and future. Here's why.

Water Under the Bridge: Refinancing for Debt Consolidation

When paying your monthly bills, you may wonder how you got into such a mess. Interest rates and charges keep going up, while your balances never seem to go down. High interest rates on consumer debt can drain your finances. Refinancing can help you get back on track by providing funds to pay off consumer debt at typically lower mortgage rates. Instead of regretting getting into debt, refinancing can provide a way to rebuild your credit and household budget.

Refinancing Can Provide Cash

If you've wanted to update your kitchen, make investments, or start a business, it's possible to get cash through refinancing. Depending on your home equity, cash-out refinancing can help meet professional and personal financial goals. You'll want to consider how long you plan to keep your home before refinancing. If you're planning to move in a few years, an adjustable rate mortgage (ARM) with a low initial rate can maximize your cash flow. Contact a Houston real estate professional for information about local property values and market trends. This can help you choose refinancing without undue risk to your home equity.

About the Author
Karen Lawson is a freelance writer with more than fifteen years of experience in mortgage banking. She holds a Master's degree in English from the University of Nevada, Reno.