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Refinance and Save Money to Help Reduce Holiday Bills

Mortgage and Lending with Quicken Loans

While refinancing your home loan may not be at the top of your to-do list this holiday season, maybe it should be.  Many residents across the country carry a mortgage with a high interest rate unnecessarily.  While rates have been fluctuating over the last few weeks, it's important to note that they are still favorable for consumers and for many, today's rates are a full percentage or more below the rate they currently hold.  That difference could be savings of hundreds of dollars now that could be used to ease other bills and thousands of dollars over the life of the loan.

I often hear clients saying that they are not only spending more on gift-giving but are making charitable donations, spending on travel to be with family for the holidays and more.  Refinancing to a lower rate can make opening those credit card statements a little more palatable knowing you've been proactive in securing your monthly mortgage payment.

If you're worried that you don't have time because of the hustle and bustle of the holidays, keep in mind that your lender will make your mortgage transaction as smooth and stress-free as possible.  To help, take some time to estimate how long you plan on staying in your home.  While many consumers are opting for a fixed 15-year or 30-year loan, perhaps you are in a situation where you will likely move in several years.  If that is the case, an ARM might be a good loan program for your needs.  Have a rough idea of your credit score and have income statements handy.  Make sure your lender digs deep and asks the right questions to determine the best way for you to accomplish more of your financial goals by improving your interest rate. 

By refinancing now, you can begin managing your spending and saving and start 2011 off with a little extra breathing room.  That's a resolution we can all afford to keep.

Emma Watson
The New Times Magazine - Agoura Hills, CA
Editor at The New Times Magazine

Use this calculator to find out an affordable monthly payment so that you know what you can afford before you make an offer on the home you want to buy.

Sep 30, 2015 03:11 PM