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Old 01-14-2019, 12:24 PM   #1
Tex_Cattleman
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Default How a New Mortgage Could Save Your Financial Rear

I continue to work with several TBHers on their mortgage needs. You are always my favorite customers! To those - THANK YOU for your trust and support. If you ever have any mortgage related questions, I am only a phone call away. We can knock that out and then talk hunting.

Each month, I contribute an article to a publication here in central Tx and then share it here with you. Read on below...

Thanks!

Trey Powers
Your TBH Mortgage Sponsor
512-203-5869
trey@treypowers.com
www.treypowers.com


My 2019 Financial Goal is __________

Happy 2019 Friends! Here we are with another fresh start at those resolutions that got away about eleven months ago. We often joke about diets and going to the gym. However, some face challenges more serious than a few extra pounds in the trunk. Snowballing credit card debt, car loans and student loans have put many in a position where they cannot see the light at the end of the tunnel. Credit card debt is the most daunting, carrying interest rates as high twenty percent! If this sounds all too familiar, now is the time to explore your options. Putting it off only increases the pain.

For homeowners, one option is to consolidate your debt and lower your monthly bills by refinancing your mortgage. A cash out refinance allows you to turn a portion of the equity you have built up in your home into cash that you can use for whatever you like. It is your hard earned, invested money and there are no limitations on how that money can be spent, including paying off other debts.

The average interest rate charged on credit cards is nearly ten percent higher than that of a current 30 year mortgage. If you are making only minimum payments, youíre not making headway to financial freedom. In fact, it could take longer to pay off that card than your mortgage! If you consolidate the credit card debt into your mortgage, you are effectively giving yourself a 10% return on your money.

A cash out refinance will increase your mortgage balance, but not necessarily increase your monthly mortgage payment, depending on the current balance, interest rate and terms you qualify for. Compared to the total combined payments each month on your credit cards, your total monthly obligations could decrease significantly. It is not uncommon in these scenarios to see a total reduction of hundreds of dollars a month.

A consultation with your trusted mortgage lender is always free. Whether exploring a cash out refinance, planning to purchase a home, or considering building a custom home, take advantage of this resource. Have a blessed year ahead!

Trey Powers is a licensed mortgage loan officer with City Bank Mortgage, a Texas-owned, Texas-Based lender. He was voted both 2017 and 2018 Best Mortgage Lender in Dripping Springs. Contact: 512-203-5869 & trey@treypowers.com. Visit www.TreyPowers.com
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Old 01-14-2019, 01:48 PM   #2
gingib
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never heard of this but great info!!!

My principle is don't put on the card what you can't pay off each month. Dave Ramsey style
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Old 01-14-2019, 02:07 PM   #3
txpitdog
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As always... until you have the discipline with getting credit cards corrected, be very cautious dipping into a real asset. People very often pay down their credit cards only to roll them right back up to where they were.


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Old 01-14-2019, 02:08 PM   #4
.270
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My 2019 Financial Goal is to sell my current home and purchase a new one.
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Old 01-14-2019, 02:12 PM   #5
Tex_Cattleman
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You guys are so right on the cc debt. When you do a cash out refi, paying credit cards in full is often part of the transaction - where the bank makes the full payment. When we go that route, I always advise closing those cards.
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Old 01-14-2019, 02:13 PM   #6
Tex_Cattleman
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Quote:
Originally Posted by .270 View Post
My 2019 Financial Goal is to sell my current home and purchase a new one.
Awesome. When you're ready, I know a good mortgage guy.
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Old 01-14-2019, 03:09 PM   #7
Iehooligan11b
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I will say Trey is an awesome guy to deal with. I was working with him recently and he was always quick to answer any questions I had and was very informative. Have some family that is looking to buy a home soon and will be sending them his way for sure.
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Old 01-14-2019, 03:57 PM   #8
kae006
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Quote:
Originally Posted by Tex_Cattleman View Post
The average interest rate charged on credit cards is nearly ten percent higher than that of a current 30 year mortgage. If you are making only minimum payments, youíre not making headway to financial freedom. In fact, it could take longer to pay off that card than your mortgage! If you consolidate the credit card debt into your mortgage, you are effectively giving yourself a 10% return on your money.


Mortgage - 4.169%

At 10% that would make the average credit card interest 4.58%. Isnít it closer to a 400% difference making the average CC interest 16-17%?

Maybe my reading comprehension is lacking.
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Old 01-14-2019, 04:20 PM   #9
Tex_Cattleman
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Quote:
Originally Posted by kae006 View Post
Mortgage - 4.169%

At 10% that would make the average credit card interest 4.58%. Isnít it closer to a 400% difference making the average CC interest 16-17%?

Maybe my reading comprehension is lacking.
Semantics
Mortgage interest rates - upper 4s
Credit card interest rates - 14ish%
Difference of 10 percentage points
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Old 01-14-2019, 05:38 PM   #10
kae006
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Quote:
Originally Posted by Tex_Cattleman View Post
Semantics
Mortgage interest rates - upper 4s
Credit card interest rates - 14ish%
Difference of 10 percentage points


I wasnít thinking of it in terms of percentage points. That makes sense, thanks!
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Old 01-14-2019, 05:43 PM   #11
joel45acp
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Quote:
Originally Posted by gingib View Post
never heard of this but great info!!!

My principle is don't put on the card what you can't pay off each month. Dave Ramsey style
Amen!
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