Home Refinancing and the Mortgage Moms
In many households, financial decision-making is closely tied to the
nation’s economy, which, in turn, fuels a majority of our social and
political issues. Industry analysts recently identified an important
demographic whose voting clout could be crucial to upcoming political
campaigns, the so-called “mortgage moms.” When it comes to major
purchases or home refinancing decisions in today’s economy, the female
head-of-household (or co-head) plays a key role and should not be taken for
granted.
According to a recent article in the Washington Post, "Flat wages
and rising debt nationally have converged to leave millions of middle-class
households feeling acutely vulnerable to bumps in their financial
planning. The most visible of these are rising energy prices and a
softening housing market. A less obvious but powerful variable is the interest
paid by people carrying credit card debt or mortgages whose monthly payments
vary with interest rates.”
Mortgage moms are committed to finding financial solutions that address their
current challenges without ransoming the family’s future. A common
solution is home refinancing, which enables them to consolidate personal debt,
access cash from their home’s equity, and trade their adjustable-rate
mortgage (ARM) for the stability of a low fixed rate.
With more home loan options widely available, homeowners are using traditional
home refinancing for a variety of purposes, including avoiding the interest
rate hikes associated with an ARM. While their monthly mortgage payments may
increase slightly, they will enjoy affordable fixed payments for the duration
of the loan. Even swapping an ARM for another adjustable rate mortgage can
provide substantial savings, provided the new loan has more attractive lifetime
caps on the interest rate.
Home refinancing can also be used to obtain cash from the home’s equity
that can be used for just about any financial need. Many homeowners use the
cash to pay off higher interest credit card debt, potentially saving themselves
thousands of dollars in interest each year. Of course, this radical approach to
debt consolidation only works if the family sticks to its budgeting guns and
does not return to its old spending habits.
With so much riding on their decisions, mortgage moms can benefit most if they
spend time researching and comparing their loan options, prior to making a
decision. Home refinancing is just one potential solution, but it is certainly
not the only route to stabilizing “the nest egg” in a fluctuating
economy. As politicians gear up for the next round of campaigning, it seems
likely that they will listen carefully to the mortgage moms and their concerns,
as they play a key role in determining so many financial decisions in
middle-class homes. To learn more about home refinancing and other loan
options, please visit HomeLoanCenter.com.
Need lower monthly payments?
Extra cash? A fixed
mortgage rate?
Refinance now!
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