We live in a world where everything is continually changing and with change there are sometimes things that require money in order to address that need that has arisen. I think one just have to distinguish between things that are truly critical needs and things that are not so critical. Because whenever these needs arise people start to look for ways in which to address such needs and it often does not take long before they look on their mortgages as the preferred way in which to get the cash that are needed.
The truth is that when you have been paying your home for ten years two things has probably happened, you have paid some of that money back and your house are now a lot more valuable than it was ten years ago. Therefore if you refinance your house at its current value you can get a substantial amount out which could be used for those other crises in your life. A lending company will in all likelihood consider your application favorably if your mortgage repayments are fully paid.
Just remember that when you refinance your home at the new higher value you start from scratch. Everything you have paid until now is immediately wiped out and you start over. You might want to consider this carefully and especially keep the time of your retirement in mind since it is not a good idea to still have a mortgage to pay when you are retired, so therefore try to avoid that. Do not be hasty and do not make rash decisions which you may come to regret in twenty years time.
By that time your mortgage could have been paid in full, but because of a foolish refinancing you have another ten years to go and suddenly your wife has unaccounted for health issues, there are the youngest child that are still studying and your car is suddenly costing money each month in costly repairs and now you regret that refinancing and you wish you never went through with it. Any mortgage related decisions must be very carefully research and it should only be attempted as an absolute last resort.
Something however that may justify that refinancing is when that money is invested in another property. In this case twenty years down the line both mortgages are almost fully paid and now you may decide to sell the one and pay off the other and then you still have money left to do something else. The advantage in this situation is your property is fully paid and you have cash in the bank and you are ready for retirement and you have the peace of mind that you are debt free and you don’t owe anyone. article3
We live in a world where everything is continually changing and with change there are sometimes things that require money in order to address that need that has arisen. I think one just have to distinguish between things that are truly critical needs and things that are not so critical. Because whenever these needs arise people start to look for ways in which to address such needs and it often does not take long before they look on their mortgages as the preferred way in which to get the cash that are needed.
The truth is that when you have been paying your home for ten years two things has probably happened, you have paid some of that money back and your house are now a lot more valuable than it was ten years ago. Therefore if you refinance your house at its current value you can get a substantial amount out which could be used for those other crises in your life. A lending company will in all likelihood consider your application favorably if your mortgage repayments are fully paid.
Just remember that when you refinance your home at the new higher value you start from scratch. Everything you have paid until now is immediately wiped out and you start over. You might want to consider this carefully and especially keep the time of your retirement in mind since it is not a good idea to still have a mortgage to pay when you are retired, so therefore try to avoid that. Do not be hasty and do not make rash decisions which you may come to regret in twenty years time.
By that time your mortgage could have been paid in full, but because of a foolish refinancing you have another ten years to go and suddenly your wife has unaccounted for health issues, there are the youngest child that are still studying and your car is suddenly costing money each month in costly repairs and now you regret that refinancing and you wish you never went through with it. Any mortgage related decisions must be very carefully research and it should only be attempted as an absolute last resort.
Something however that may justify that refinancing is when that money is invested in another property. In this case twenty years down the line both mortgages are almost fully paid and now you may decide to sell the one and pay off the other and then you still have money left to do something else. The advantage in this situation is your property is fully paid and you have cash in the bank and you are ready for retirement and you have the peace of mind that you are debt free and you don’t owe anyone. article3