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.
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.
If you have an existing mortgage loan, you have the option to refinance it. You do this by securing a new home loan to pay off your original mortgage. But you may be wondering, why refinance if you already have a home loan? There are a few key reasons it may make sense.
If you run your own business (25% or more), are a gig worker or independent contractor — and you want to refinance, it could be more challenging for you to secure financing. It can be harder to prove how much income you have without a steady paycheck or W-2. That’s why most lenders have stricter rules for self-employed borrowers.