By your 40s, you have probably hit your financial stride and maybe in a home that you’ll be keeping for some time. You’ve established long-dated credit, have probably accumulated some assets, and are likely in your peak earning years. At the same time, you should be seriously planning and funding your retirement, may have college expenses for your children (or will soon), and may feel stressed trying to handle expanding financial obligations. What you should do with your mortgage (if anything) will depend on both the past and the future.
Mortgages should be treated as part of your investment portfolio and retirement strategy, and learning to manage your mortgage along with the rest of your finances is just a part of life. Younger homeowners and older homeowners have different goals and challenges when refinancing their mortgages. It’s important to learn why and how mortgage financing — and refinancing — strategies should change as you get older.
Most people have heard the saying that it might be a good idea to refinance if mortgage rates drop. For those who might not know, refinancing is essentially taking out a new loan to replace the old one because the new loan has a lower interest rate.
This could shorten the time span of a long time and reduce monthly payments, or save money on the total cost of the home. At the same time, refinancing is not right for everyone. How can homeowners determine if refinancing is right for them?
It seems like everything is getting jumbo sized these days. Jumbo sized soft drinks. Jumbo sized fast food meals. Jumbo sized smartphones. But one thing that nobody thought would get jumbo sized? Is mortgages.
So what exactly is a jumbo mortgage? How is it different from a standard mortgage, and what does that mean for your refinancing options? Here’s what you need to know.
What is your single biggest monthly expense? Some feel that their student loan is it. Others feel they overpaid on their car. Others believe that their credit cards are consuming them. While all of those are reasonable answers, the truth is people’s single expense monthly is their mortgage.
Many homeowners today do not think of their home as their single biggest expense. They see it as a part of life. While that is true, why have your single biggest expense for 30 or 40 or in some cases 50 years!! Let’s break it down: