Home Refinancing And The Mortgage Moms

Home Refinancing And The Mortgage Moms



Home Refinancing And the​ Mortgage Moms
In many households,​ financial decision-making is​ closely tied to​ the​ nation’s economy,​ which,​ in​ turn,​ fuels a​ majority of​ our social and political issues .​
Industry analysts recently identified an​ important demographic whose voting clout could be crucial to​ upcoming political campaigns,​ the​ so-called mortgage moms .​
When it​ comes to​ major purchases or​ home refinancing decisions in​ today’s economy,​ the​ female head-of-household (or co-head) plays a​ key role and should not be taken for granted.
According to​ a​ recent article in​ the​ Washington Post,​ Flat wages and rising debt nationally have converged to​ leave millions of​ middle-class households feeling acutely vulnerable to​ bumps in​ their financial planning .​
The most visible of​ these are rising energy prices and a​ softening housing market .​
a​ less obvious but powerful variable is​ the​ interest paid by people carrying credit card debt or​ mortgages whose monthly payments vary with interest rates.
Mortgage moms are committed to​ finding financial solutions that address their current challenges without ransoming the​ family’s future .​
a​ common solution is​ home refinancing,​ which enables them to​ consolidate personal debt,​ access cash from their home’s equity,​ and trade their adjustable-rate mortgage (ARM) for the​ stability of​ a​ low fixed rate.
With more home loan options widely available,​ homeowners are using traditional home refinancing for a​ variety of​ purposes,​ including avoiding the​ interest rate hikes associated with an​ ARM .​
While their monthly mortgage payments may increase slightly,​ they will enjoy affordable fixed payments for the​ duration of​ the​ loan .​
Even swapping an​ ARM for another adjustable rate mortgage can provide substantial savings,​ provided the​ new loan has more attractive lifetime caps on​ the​ interest rate.
Home refinancing can also be used to​ obtain cash from the​ home’s equity that can be used for just about any financial need .​
Many homeowners use the​ cash to​ pay off higher interest credit card debt,​ potentially saving themselves thousands of​ dollars in​ interest each year .​
Of course,​ this radical approach to​ debt consolidation only works if​ the​ family sticks to​ its budgeting guns and does not return to​ its old spending habits.
With so much riding on​ their decisions,​ mortgage moms can benefit most if​ they spend time researching and comparing their loan options,​ prior to​ making a​ decision .​
Home refinancing is​ just one potential solution,​ but it​ is​ certainly not the​ only route to​ stabilizing the​ nest egg in​ a​ fluctuating economy .​
As politicians gear up for the​ next round of​ campaigning,​ it​ seems likely that they will listen carefully to​ the​ mortgage moms and their concerns,​ as​ they play a​ key role in​ determining so many financial decisions in​ middle-class homes.




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