Could use use more money every month for anything? Of course, you could. It’s a a rhetorical question
for most people in this country. While it’s not meant to be cheezy or insulting, the question is really posed to help you take action with your families financial well being and save money on your home mortgage. There are a couple very, very good government sponsored mortgage refinance programs available right now to homeowners that despite heavy publicity as still not being taken advantage of by many people who can benefit from them simply because they are not aware that they existed.
One of the best mortgage refinance programs available is the HARP Loan Refinance program that is available to holders of Freddie Mac or Fannie Mae backed home mortgages. How do you know if you loan is backed (or
owned) by Freddie or Fannie? You can either:
How do you get to the $337.91 savings per month? Using a $200,000 loan balance with a 30 year amortization term as an example:
At 6.5%, your PI (principal and interest) payment is $1,264.14 per month. Refinancing at a current rate of 3.75% gives a PI payment of $926.23 for a difference of $337.91 per month in savings.
Back to the original question of what could you use the money for?
- Payoff credit card debt – the average household credit card debt is $15,799.
- Add to your retirement account – $337.91 every month for a year is $4,054.92.
- Lease a new car. Although buying and holding onto a car is better financially in the long term, if you must drive a new car, then use the money saved for this.
- Take your spouse out to dinner more Take a low cost, local, weekend vacation. Surely there is some weekend getaway, tourist attraction or activity you can do near your house that you always put off. You can now do that once per month with the mortgage money saved!
- Buy a airplane ticket and travel to see friends or relatives.
- Pay off any outstanding medical bills.
- Pay off student loan debt.
- Get that dental work done.
- Work a couple days less each month and spend the time with your family.