Home Refinancing And The Mortgage Moms
Friday, November 03, 2006
In many households, financial decision-making is closely tied
to the nation's economy, which, in turn, fuels a majority of
our social and political issues. Industry analysts recently
identified an important demographic whose voting clout could be
crucial to upcoming political campaigns, the so-called "mortgage
moms." When it comes to major purchases or home refinancing
decisions in today's economy, the female head-of-household (or
co-head) plays a key role and should not be taken for granted.
According to a recent article in the Washington Post, "Flat
wages and rising debt nationally have converged to leave
millions of middle-class households feeling acutely vulnerable
to bumps in their financial planning. The most visible of these
are rising energy prices and a softening housing market. A less
obvious but powerful variable is the interest paid by people
carrying credit card debt or mortgages whose monthly payments
vary with interest rates."
Mortgage moms are committed to finding financial solutions that
address their current challenges without ransoming the family's
future. A common solution is home refinancing, which enables
them to consolidate personal debt, access cash from their
home's equity, and trade their adjustable-rate mortgage (ARM)
for the stability of a low fixed rate.
With more home loan options widely available, homeowners are
using traditional home refinancing for a variety of purposes,
including avoiding the interest rate hikes associated with an
ARM. While their monthly mortgage payments may increase
slightly, they will enjoy affordable fixed payments for the
duration of the loan. Even swapping an ARM for another
adjustable rate mortgage can provide substantial savings,
provided the new loan has more attractive lifetime caps on the
interest rate.
Home refinancing can also be used to obtain cash from the
home's equity that can be used for just about any financial
need. Many homeowners use the cash to pay off higher interest
credit card debt, potentially saving themselves thousands of
dollars in interest each year. Of course, this radical approach
to debt consolidation only works if the family sticks to its
budgeting guns and does not return to its old spending habits.
With so much riding on their decisions, mortgage moms can
benefit most if they spend time researching and comparing their
loan options, prior to making a decision. Home refinancing is
just one potential solution, but it is certainly not the only
route to stabilizing "the nest egg" in a fluctuating economy.
As politicians gear up for the next round of campaigning, it
seems likely that they will listen carefully to the mortgage
moms and their concerns, as they play a key role in determining
so many financial decisions in middle-class homes.
About The Author: Need lower monthly payments? Extra cash? A
fixed mortgage rate? Refinancing is an easy and convenient.
VisitHome Loan Center for great rate on a mortgage refinance.
http://www.homeloancenter.com/
posted by Dennis Cheesman @ 6:48 AM,
