The best way for someone to take a look at refinancing your mortgage initially is to have access to your financial situation. If rates are extremely high, you may not want to refinance for any reason. However, if you have a distinct reason to refinance your mortgage, and interest rates are low, you can: save money off your monthly payment. Pull some cash out to renovate your house or even build a pool. Consolidate your debts or consolidate a second mortgage. Or even pay off all those credit cards that have you stressed out.
Maybe you are stressed that your credit cards are maxed out and you are overrun with debt, and your income is structured in such a way that you can’t get ahead. Maybe you have to do some restructuring in order to get your debts under control.
If it is the right environment, you can really use refinancing to help. Any mortgage guy can give you all the reasons to refinance. Once you are in a position where there are good market conditions; you’ve taken care of your debt; and you are sitting around thinking how to better your situation — this is when the mortgage management philosophy comes in to play.
Make no mistake about it—saving is the same as earning.
If you have a $400,000 debt that you can manipulate and refinance every single time the rates drop and save another $100, $150, $200, $300 a month, you have turned your largest debt into a money-making asset.
With our mortgage management philosophy, we are going to manage your mortgage. We are going to jump on the market every time that it benefits you, because if it benefits you, then that means it benefits us. Every time we redo your mortgage, you save money and we make money. Once you subscribe to the money management philosophy, you understand that you can now manipulate your debt, just like you would with an investment account. How much time do you spend trading your investment or 401K accounts? You don’t have nearly as much power with your investment accounts as you do with your biggest debt: your mortgage.
You can now manipulate your largest debt for free with no closing cost every time it suits your personal needs or the market fluctuates so that you can save money every month. You have now turned your largest debt into a money-making entity for you.