The equity in your home can help you through the next several months
By Marshall Kutz, CEO of AMKO Lending
Rates are low!
Now is the time to buy a home!!!
You’ve probably been inundated with countless articles and posts telling you that now is the time to refinance … or even that it’s the perfect time to buy that dream home.
Both of those things are true. Interest rates are low, so you’ll definitely save some money if you choose to buy or refinance.
But things are unusual right now. Social distancing, lots of layoffs, an unstable economy and no real idea when things will return to normal are cause for concern. Your family’s financial future may feel uncertain.
Your home, however, could hold the key to helping you through the next several months. And personally, I think that could be the best way to take advantage of these low-interest rates.
If you’re like most American homeowners, you’ve seen your home increase in value over the past few years. You also may have acquired some credit card debt (with a high interest rate) as well. A smart way to make sure your finances are secure is to use the equity in your home to pay off or consolidate your debt. That frees you of monthly payments that have higher interest and can create room on your credit cards in case you need it.
And if there’s enough equity in your home, you can even set aside some money as an emergency fund to help you weather the next several months. This could be exceptionally helpful if you find yourself not working for a while.
We know rates are low. What we don’t know is what the near future holds. The time to refinance, consolidate debt and get find some financial certainty from your home’s equity is now.