Save Money Regardless of Rate
Let’s address the interest rates and how to save money regardless of the rates. With all the positive economic news , the last couple months have seen rates tick up quickly. You know what else has ticked up quickly: credit card debt. The US has added an estimated $17 Billion in credit card debt in the past 6 months. So rates on mortgages are now in the 3’s but rates on credit cards are in the teens. A client this week came to us with over a dozen credit cards that totaled $2600 in monthly payments. She currently has a 2.99% interest rate on her mortgage and was hesitant to refinance to a higher rate. Through a cash out refinance, we were able to save our client $2030 per month with an interest rate over 4%. You think she cares about the rate? She’s saving $25,000 per year and her gameplan is to apply that savings back toward principal to pay her house off 7 years faster than she would have with old loan. It’s not about the percents, its about the dollars and cents!