Mortgage and Lending	RAINER 1,568
	William Spencer
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Four Good Reasons To Refinance With interest rates fluctuating every week, now is the time to discuss when you should make the decision to refinance. Normally, homeowners tend to rush refinance the moment they hear interest rates have fallen. Not a bad idea, but if you don’t act quickly enough, rates in this market might have risen again before you place your first call to your lender. Also, homeowners sometimes fail to include the lender’s fees into their total cost figure. If you’re trying to decide when you’ll start saving money, it helps to know all the costs involved. So here are 4 good reasons, in detail, why you should refinance The No-Cost RefinancingIf you have a fixed-rate loan and can refinance for "no-cost," which means basically that there is a lower rate with no out-of-pocket fees, you should refinance. You may still be able to save money even if you are several years into the loan. If you are, say, just starting year 5 of your loan, the refinance can amortize your loan over 25 years, rather than 30. That way, you are still paying off the loan in the same amount of time. And with the lower balance, you may be saving thousands of dollars in interest over the life of the loan.Lower Monthly PaymentReducing your monthly payment can help in many ways. you can take the extra money and start accumulating wealth, you can protect yourself in case of accidents, or losing your job. having control over your money is a key to financial success and lowering your monthly payment helps put more money in your control. Maintaining Your Tax AdvantageAs a person gets closer to paying off their mortgage they generally start losing their tax advantage. The worst part about this is that they are generally at that point making more income than ever. Refinancing and keeping your mortgage as long as possible is a huge benefit in tax savings.The Cash-Out RefinanceWhen you refinance your home you can get a new loan that is higher than your current loan and take the difference as cash in your pocket. Generally people do not do this because the payment goes up. The most important thing when cashing out is what you are going to do with the money. Taking your equity and investing it is one of the fastest ways to financial success. Getting the right mortgage strategy when cashing out is essential to help with the higher payments you will incur

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Use Equity To Build Wealth Buying a home is one of the most intelligent investments you’ll make. The best part of it is that you will actually benefit from home ownership financially while you live in the home. Becoming a homeowner should be a priority for everyone. If you purchase a home you can create wealth with the equity that builds in your home. When investing equity there are three rules that must be followed Liquidity Because extracting equity from your home requires a monthly payment and there are a many different life situations that come along having access to your money is paramount. Not only to protect from emergencies or accidents, but also because good investment opportunities come along at unpredictable times. Having all your money tied up when the deal of a lifetime comes along is not the best strategy when trying to build assets.Safety of principalWhen investing equity, losing principal is the worst possible scenario so finding investments that will help avoid this is very important. There may be investments that don’t produce the way you would like, but keeping your principal secure is one of the rules that must be followed. High rates of returnArbitrage is one of the greatest but least known principles in the financial world. for example, when you put your money in a cd at a bank they offer you 3%. This 3% is what they are borrowing your money at. They in turn lend out your money for 6-8% and the difference is their profit. This is arbitrage. So when investing equity all you have to do is gain a higher rate of return than what you borrow your equity at. Arbitrage will help you obtain your financial goals much faster than any other principle of money.

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