Given the challenges of daily living these days, it makes sense to get your finances in order with a goal to save money and become more financially savvy. Now that it’s spring, it’s the perfect time to conduct a financial review to see where you can make improvements to your finances for both the short and long-term. We’ve provided a few suggestions for the best ways to get back on track and improve your financial standing.
Refresh your mortgage with a refinance
Mortgage refinancing can allow you to access up to 85% of your home’s value, discounting any outstanding mortgages. Refinancing a mortgage involves replacing your existing loan with a revised one, either with the same or a different lender.
Some homeowners choose to refinance their home mortgage to take advantage of low-interest rates, while others take out equity from their home to consolidate multiple mortgages into one. It’s always a good idea to consider a mortgage refinance once your current mortgage is coming up for renewal to see how much money you can save. For more information on refinancing your mortgage, read our recent blog post.
Renovate Your Home
Spring is the perfect time to deep-clean your home, but it’s also an ideal time to take on that special project you’ve been putting off. When you have the ability to access your home equity, it makes sense to put that money towards something that will earn you more money. Thinking of a bathroom reno? Want to update your garage door? Maybe you want to build that backyard deck now that the weather is improving? Whatever project you have in mind, taking out a home equity loan or home equity line of credit (HELOC) will ensure that you have the funds to make it happen.
Reassess Your Budget
If you have found that your spending patterns have changed over the past few months, it might be time to create a new budget that reflects your current expenses. Taking into account the rising cost of living, including higher energy costs, gas prices and the increased cost of food, it makes sense to do a thorough analysis of your needs and budget accordingly. If you think you can cut back on any unnecessary expenses, then ask yourself what you can eliminate from your budget. You don’t have to cut out these things immediately, instead a phased-out approach can also work.
It is a good idea NOT to create any new drastic changes in your life such as making any big purchases. That way you can maintain a sense of normalcy and reduce any variable expenses that might arise. It also makes sense to establish an emergency fund or replenish an existing account to prepare for any uncertainty that may occur. Being on top of your budget and aware of your monthly expenses is a smart way to make sure you can manage everything life brings your way.
Check Your Credit Score
Your credit history can determine whether you get a better mortgage rate or more preferrable rates on just about anything. Being aware of your credit score is important because it allows you to know what options might be available to you to improve your financial situation. If you have bruised credit as a result of a few missed payments on your credit card or line of credit, you might be faced with higher interest rates if you apply for a loan. Having the ability to improve your financial standing revolves around being aware of your credit score and making adjustments to your current situation so you can secure more preferential interest payments. You can obtain your score through Equifax, TransUnion or Credit Karma.
Consolidate Your Debt
Accumulating debt is easy to do, especially if you are faced with an emergency situation where you have to draw funds quickly from a credit card or line of credit. All it takes is one missed payment to incur late fees, interest charges, and other penalties.
Whether or not you have bad credit, maxed-out credit cards, or credit other issues that have put a damper on your financial standing, applying for a debt consolidation loan means you will have one single payment instead of paying multiple lenders at a lower interest rate. Debt consolidation refers to the process of reorganizing and refinancing your current debts, so they are more manageable. A debt consolidation mortgage loan allows households to redefine how they approach their budgets so that they can make the most of their capital and improve their financial standing.
If you found this post helpful, we have additional tips on more ways to save money – read our recent ‘A Homeowners Guide To Saving Money’ blog. Additionally, if you would like to use your home equity to tackle a number of projects this spring and get a financial refresh, get in touch with us today!
