For many individuals and families, freeing up cash-flow is an important priority. One of the easiest and biggest places to do this is through a home refinance. There are several options to explore if this is your priority:
- Simply lower your interest rate.
- Restart your loan again at a longer term. If you’ve had you loan for several years, chances are that your principal due has dropped a fair amount. If you simply refinance that back into a new long-term fixed loan, you may see your payment drop hundreds of dollars per month!
- Consider an interest only loan. While they aren’t for everyone, this structure could radically lower your payment from a fully amortized principal and interest loan. Your principal amount won’t change unless you elect to pay extra to pay it down, but you could definitely keep your payments low by only paying the interest that is due.