Give your mortgage an annual check up

If the last time you looked at your mortgage was probably when you closed on your loan.  Once a year you should take it out for an annual once over.  New loan programs and opportunities to leverage your home equity can bring you lower mortgage payments and new investment opportunities.

Is a fixed rate mortgage the best choice for you?

Many of us opt for the certainty of a 25, 20 or 30 year fixed rate mortgage when we get our first mortgage.  If you anticipate selling your home within the next 10 years, one of our new hybrid loans may be a better financial fit for you and lower your monthly payments, increasing your cash flow.  Hybrid loans typically have a lower fixed rate than a traditional 15, 20 or 30 year mortgage.The savings you receive can well be worth switching to a hybrid loan.

Are you paying for Private Mortgage Insurance (PMI)?

There are a lot of new loan programs available that can help you eliminate PMI, even if you have less than 20% equity in your home. The monthly savings can quickly add up.  You may well have a better use for the equity in your home to reach other short-term or long-term financial goals.

Are your taxes and insurance up to date?

Even though the servicer of your mortgage is responsible for paying your property taxes and insurance out of your escrow account, it makes sense to periodically check to see that these payments are being made properly. While you’re at it, you’ll want to review your homeowner’s insurance policy.  It’s a good idea to review your policy every two to three years to make sure it covers any home improvements, replacement costs for the contents of your home, and that your policy's reconstruction coverage is keeping pace with inflation.

Do you have a Home Equity Line of Credit (HELOC) for emergencies?

Many homeowners make a proactive choice to secure a Home Equity Line of Credit (HELOC) for emergencies.  A HELOC is a revolving line of credit that only charges interest when you actually draw money from the line of credit.  As you repay the balance of the draw, the credit becomes available again.  Securing a HELOC in advance can be a great help if you’re ever laid off or have an unexpected medical or other emergency - and you are then less likely to be lendable.

How’s your credit report?

The information in your credit report has a huge impact on whether or not you will again qualify for a mortgage loan.  That’s why it’s important to periodically check your credit report.

Now it’s even easy to do so. A recent amendment to the federal Fair Credit Reporting Act (FCRA) mandates that each credit reporting company provide you with a free copy of your credit report, at your request, once a year. To request your free credit report, visit http://www.annualcreditreport.com.  Don't make the mistake of using one of the advertised "free" credit reporting services.  They're not free at all and these providers sell your credit information to other companies.  Frankly, the fewer people who have your private information, the better.

Are you making the most of your home’s equity?

Because of rising appreciation, the increasing value of your home or other real estate, you may have more equity than you realize.  Taking out a home equity loan to payoff credit card debt, car loans and other higher interest debts makes good financial sense.

Is it time to refinance?

Right now, or sometime in the near future, might be right to refinance your mortgage loan.  Your nnew rates may help you significantly lower your monthly payment.  Or you might want to “cash out” some of the built-up equity in your home, to consolidate debt, improve your home, take a vacation - whatever!  Perhaps by refinancing you can even pay off your mortgage sooner!

Besides lowering your interest rate on other debts, you may very well turn non-tax deductible interest into interest expense which you can use to reduce your adjusted gross income and lower your tax obligation, legally.

The Sam Croskell TEAM will work with you to determine if the timing is right to change your loan program, considering your cash on hand, how likely you are to sell your home in the near future, and what effect refinancing might have on your future plans.

We'll also help you to determine if such a change makes sense for you based on your psychological goals.  Let's face it, money and finances are emotional and your internal concerns, even fears, need to be addressed in any financing decision you make.