The holidays will be here before we know it—so will the extra spending for gifts, holiday travel, throwing parties and other fun. It’s also a time when many families take a look close look at their expenses and make resolutions to spend differently in the upcoming year.10-01-Holiday-Prep-Article

A great way to prepare for year-end expenses, and to develop smarter spending habits, is to refinance your home mortgage. With all the holiday and end-of-year excitement on the way, why not refinance now before the holiday season gets into full swing—and before the holiday spending and expenses start coming in? Here are some of the reasons refinancing makes sense.

  • Rates are still very low: Of course we can’t predict the future. Which is why you need to refinance before the rates go back up. There’s no telling what the New Year will bring. So the sooner you take advantage of today’s low rates, the better. Depending on the option you choose, a lower rate can make your payments go down, help you save thousands in interest, or both.
  • Lower your monthly payments: Getting a lower rate could free up hundreds of extra dollars each month that can be saved, invested or used for other expenses throughout the year.
  • Get a shorter term: This will help you pay off your loan sooner and save thousands of dollars in interest over the life of the loan.
  • Get access to cash: A cash-out refinance lets you turn some of your equity into cash to use however you like from paying off credit cards to education or a vacation.
  • Switch from an adjustable- to a stable fixed-rate loan: Locking in a low fixed rate now will keep your monthly payments from increasing when the rates do go up.

Spend less, save more in the coming year. Every year, when Americans resolve to make changes to their habits and lifestyle, financial fitness is usually high on the list of personal goals. According to Nielsen, a global research company that researches consumer spending behavior, at the beginning of this year, 25% of Americans made resolutions to spend less and save more in 2015.* Refinancing your mortgage while rates are still low is a smart way to kick-off a more financially sound year. And it’s a great first step toward developing better spending habits.

With all the holidays, traveling, gifts and parties about to start, personal spending goes up for everybody at the end of the year. That’s why refinancing now makes sense. You could start saving money, get access to extra funds, and start the year off on a better financial path. Why not give yourself a better mortgage this holiday? Contact a PrimeLending mortgage expert today to get started.


From the PrimeLending blog, by Mandy Jordan