Smart Borrower Center
Tools to help you borrow better
If you’ve been in your home for a number of years, now may be a good time to reassess your mortgage and home equity. Keeping your eye on the market and exploring your options can save you money and allow you to achieve your financial goals.
Put your home equity to work for you
The housing market has risen steadily in recent years and chances are that you’ve built up a substantial amount of home equity. You can use that equity for a variety of wants and needs.
If you have children heading off to college or are approaching retirement age, now may be the time to consider taking out a home equity loan or line of credit to help pay for their college tuition. You can also tap your home equity to finance the cost of a home renovation or major home improvement. This is one of the least expensive ways to borrow, and the upgrades you make can end up adding significant value to your home.
Experts do warn, however, against using your home equity to get cash for everyday needs. If you are having a hard time making ends meet, it may be better to reexamine your budget and make some changes in your spending.
Refinance your mortgage and save
Refinancing means replacing your existing mortgage with a new one that offers better rates and terms. If interest rates are dropping, refinancing for a lower rate can save you money and help you meet other financial needs. If interest rates are rising and you have an adjustable rate mortgage, you may want to protect yourself from further rate hikes by refinancing to a fixed-rate loan.
In order to determine if refinancing is right for you, weigh the costs of taking out a new mortgage against your potential savings. The LendingTree refinancing calculator can help you do the math.
As you near retirement age, take a look at your finances to see whether you will be able to live the lifestyle you want after you stop working. During your retirement, you may be living on a fixed income and your house may be your biggest financial resource. Talk with a financial advisor to come up with a plan that will make the most of your home, mortgage and equity.