Everything You Need To Know About Mortgages

If Its Your Mortgage, Its Your Money   by Scott Oberholser

At least some of it can be. If you have a mortgage, you may be missing out on monthly cash that belongs in your pocket and not your mortagage companies’. This is cash flow you definitely want a part of. What is cash flow? Cash flow is the movement of cash into or out of a financial product. Your mortgage is a financial product you have the opportunity to move money out of. And into your savings account or investment portfolio. How? Simply refinance your mortagage or get one. Refinancing your existing mortgage,modifying, or obtaining one are, when looked at closer, are great ways I would like to show you how to manage your money better.

Refinance-Interest rates still at all timel low!-that’s right, interest rates on home mortgages remain as low as they have been in a very long time. Lower rates mean lower payments for your mortgage. Lower mortgage payments means more disposable income. Which means more cash flow for you. How low are interest rates right now? As of July 27th,2011 a 30yr fixed rate was available at 4.68%APR. A 5yr ARM was available at a rate of 3.058%APR.

Loan modification-Recent government initiatives have allowed mortgage companies to modify current loans and give more favorable terms. This is a great opportunity for homeowners to lower their interest rate and increase cash flow. By providing some basic information and completing a few forms and submitting them to a mortgage company, you may be able to lower your interest rate and reduce the term of the loan.

Buy a Home-Regardless of where you live, chances are the amount of your rent payment may be the same as a mortgage payment on a home. How does this save me cash each month? It doesn’t, it saves you cash each year. The amount of interest that you pay monthly on a mortgage is tax deductible whereas all the money you pay towards rent is NOT! Your cash flow just went up just by changing who you cut a check to every month.

Traditional thinking has been that your mortgage company owns your house and you just make the payment on it. Changing your thinking from “My mortgage company owns my house, not me” to “I own my house, my mortgage company doesn’t” automically should allow you change this mindset and view your monthly mortgage payment in a much more positive light. Your mortgage company is a finacial procduct you own that allows you to potentially incerease your cash flow! That is one of the best possible cash management techniques you can possibly employ.

About the Author

Currently reside in Colorado Springs. Graduated from University of New Mexico with a Business degree. Have been helping people better manage their money for 5 years.
Weekly Mortgage Market Update Apr 21st 2012.MTS

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