Refinancing is more exciting than you think.
In recent posts, we’ve made frequent reference to refinancing as a great investment strategy when applied to your income property portfolio. But the realization struck that while everyone has probably heard the term, some may only have a vague idea of what it actually means.
So, let’s get everyone on the same footing and define exactly what it means to refinance. At the foundation, refinancing is when your bank or mortgage company allows you to cancel your existing loan and replace it with a different one that is defined by different terms like a lower interest rate or extended repayment time.
The most common form of refinancing for consumers is done with a home mortgage. One of the best uses for a refinance is to reduce your risk associated with the loan. What if you find yourself stuck with an adjustable rate mortgage? You probably realize you’re at the whim of the rise and fall of the various indices used to calculate them. This means your monthly payment could shoot to the moon if the rates suddenly rise exponentially. What can you do? Nothing! You have no control over it unless you can get your bank to refinance your adjustable rate into a fixed rate, which means it stays the rate stays the same no matter what the crazy indices are doing.
Presto. Instant reduced risk. This is a very basic introduction to refinancing. If you own your own home, Platinum Properties Investor Network can show you how to use refinancing to retire in 12 years. Maybe sooner. Give us a call (714-820-4200) to learn how to refinance your way to financial freedom.