Lately, the financial market has been a bit gloomy.

Credit card balances have been skyrocketing, and thanks to the Fed, rates have been increasing significantly on these balances. You probably noticed the same rate increase for auto and personal loans as well.

On top of that, student loan repayments are starting back soon, and the United States is seeing some of the lowest saving rates in many years – meaning, folks just don’t have extra money laying around. All this can cause some potentially sleepless nights.

However, If you are a homeowner with high indebtedness, there may be a solution that can also help create wealth, even if the interest rate on your current mortgage is low.

Fortunately, home values have risen over the past several years, giving many homeowners a large amount of equity. Instead of being trapped in their home, a cash-out refinance can allow them to access this equity to pay off debt.

The potentially substantial monthly savings can provide significant cash flow relief, and if that extra cash is used to accelerate payments on the new mortgage, it's even possible to reduce the life of your mortgage. This can create much-needed wealth for many families, especially if current savings for your future are not where you would like. 

We have a great tool where I can plug in all of your numbers and let the math decide for us. Just because you have a low rate on your first mortgage doesn’t mean this opportunity is out of the question for you. We will look at your overall debt load and consider all the factors, and I will advise what’s best for your individual situation.

If you would like to learn how this may benefit you, reach out to my team! You can DM me the word "SAVE” or connect with us from our website here. We look forward to bringing some positive solutions to the table!

About the Expert:

Donnie Eden is a licensed mortgage planner and the owner of Prosperity Mortgage Advisors in White House, Tennessee, founded in 2015. He has his BA in Economics from The University of Tennessee and has helped over 5,000 families so far throughout his career. 

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