Announcement

Collapse
No announcement yet.

Snowball of Debt? Is Your Mortgage the Solution?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Snowball of Debt? Is Your Mortgage the Solution?

    TBH Friends: Now that 20,000 Q posts are gone, you have time to read the the information below.

    I originally wrote this column a year ago when we thought interest rates were as low as they could possibly ever go. HA, we were wrong.

    If the weight of debt is dragging you down, you are not alone. The average debt in America (not counting a home mortgage) is $97,000. Credit card balances, car loans and student loans have put many of us in a position where we simply 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.

    For homeowners, one option is to consolidate your debt and lower your monthly bills by refinancing your mortgage. With rates at all-time RECORD LOWS this option is even more attractive today. 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. Most people use it to pay off high-interest debt, fund a large purchase or finance a home improvement project.

    The average interest rate charged on credit cards is nearly ten percent higher than that of a current 30 year mortgage. If you consolidate the credit card debt into your mortgage, you are effectively giving yourself a 10% return on your money. Some may argue that you would be simply extending the payoff of a short-term debt into a long-term debt. Really? For those making minimum payments on your credit card debt, you’ll never pay them off.

    To calculate how much cash you can access from the equity in your home, take the estimated current home value and multiply by point eight. Then subtract from that number, the current balance of your home loan.

    A cash out refinance will increase your mortgage balance by the amount of cash needed. This might cause your monthly mortgage payment to increase, depending on the interest rate and terms you qualify for. However, compared to the minimum payments each month on your credit cards it is likely your total monthly obligations may decrease significantly. It is not uncommon in these scenarios to see a total reduction of hundreds of dollars a month. And again, with rates low, you might reap that cash in your pocket without increasing your monthly mortgage payment at all.

    Whether exploring a cash out refinance, planning to purchase a home, or considering building a custom home, please know I’m always here as a resource for you! Call (512-203-5869) or email (trey@treypowers,com) if I can ever be helpful OR if you just want to talk hunting.

    As your TBH mortgage lender, I’m here for you!

    Interest rates and loan terms are are subject to change without notice. Your exact rate or rate quote will be determined by your loan terms, credit scoare and value. Nothing in my posts are (or should be construed as) an offer to extend credit.

    Trey Powers
    Senior Loan Officer
    City Bank Mortgage (An Equal Opportunity Lender)
    1326 Hwy 290
    Dripping Springs, Tx 78620
    512-203-5869
    trey@treypowers.com
    NMLS 1294913
    Last edited by Casey; 01-22-2021, 06:26 PM.

    #2
    We are just about finished building our home and we are working under the construction loan at this time. Do you do mortgage loans for self employed in Louisiana?

    Comment


      #3
      Originally posted by RaginCagin View Post
      We are just about finished building our home and we are working under the construction loan at this time. Do you do mortgage loans for self employed in Louisiana?
      Yes sir - all day long. I assume you are talking about the refinance from construction loan to perm, fixed rate loan.

      Comment


        #4
        Pm sent

        Sent from my SM-G975U1 using Tapatalk

        Comment


          #5
          Originally posted by Tex_Cattleman View Post
          The average debt in America (not counting a home mortgage) is $97,000.
          That is simply mind boggling to me I’m glad that I’m not burdened down with CC debt. We do have vehicle loans, but nowhere remotely near $97k in debt. And the house is almost paid for. I’ll be ecstatic when it is done and over with

          I may be able to force myself to buy a boat when the house is paid off. I’ve talked myself out of buying one for 10 years now...but it’s getting harder to talk myself out of it, to be honest

          Comment


            #6
            'scuse me...........................
            but, did I just click on a commercial..............????

            Comment


              #7
              Originally posted by sailor View Post
              'scuse me...........................
              but, did I just click on a commercial..............????
              Bahaha! Yep. I think we did. From what I've seen over the years Trey has hooked a few people up, but he caught me hook, line, and sinker on this one.

              Comment


                #8
                Originally posted by TxDispatcher View Post
                That is simply mind boggling to me I’m glad that I’m not burdened down with CC debt. We do have vehicle loans, but nowhere remotely near $97k in debt. And the house is almost paid for. I’ll be ecstatic when it is done and over with

                I may be able to force myself to buy a boat when the house is paid off. I’ve talked myself out of buying one for 10 years now...but it’s getting harder to talk myself out of it, to be honest
                You ever looked at the US federal debt per citizen??? $97,000 is pennies.

                Comment


                  #9
                  i am one with several cc debts, not as high as the 97k but enough to make it seem like i will never finish... paid the house off, but still never seem to have the extra money ... on top of that had to go out buy a Harley.. that was not truly needed.. the wife is adamant against taking a loan out against the house to pay off everything, as well as to build a new shop.
                  thinking of taking out a loan but not sure which way to go..

                  Comment


                    #10
                    I'm currently going through the re-fi process with Trey. Very competitive rates and it has been a painless process. Plus, he's a TBH Sponsor!

                    Comment


                      #11
                      What's the cost of the refi? Is it added to the end of the note? How much out of pocket would there be? Seriously considering this.

                      Sent from my SM-G955U using Tapatalk

                      Comment


                        #12
                        I refinanced using yall 6-8 months ago. Great help and process!!!! So glad I did it, locked in 3.25%

                        Its not worth it to do it again likely, but what are 30 year rates at now with no points and good credit?

                        Comment


                          #13
                          We are building a house and went through the construction loan process with Trey. Very simple and a good dude. His interest rate on the construction loan (interest only payments) was 3% lower than another lender that we looked at. And that lender came very highly recommended and is a hell of a guy as well.. Appraisal was awesome and we will most likely be refinancing to the perm loan with Trey as well.

                          Thanks Trey for all your help. I will be in touch when we are 60 days out so we can lock the low rates.

                          Comment


                            #14
                            Originally posted by WItoTX View Post
                            You ever looked at the US federal debt per citizen??? $97,000 is pennies.
                            Maybe, but I can't print my own money to pay my debt (well, not supposed to anyway).

                            Comment


                              #15
                              Using Trey again....good guy, easy process!

                              Comment

                              Working...
                              X