Whether you are looking to lower your payment, lower your rate, consolidate debt, remove PMI, lower your term or maybe all of the above, here is some food for thought when you are contemplating if you should refinance. When you refinance you will skip your first months payment or you can bring in your payment to reduce the principal.

First, take the skipped payment, pay off existing debts and credit cards. Take the escrow refund, pay off or down any other another debt you may still have, now that combined skipped payment and escrow refund just allowed you to free up some money adding to your monthly mortgage savings.

From there, next month take that savings of cash flow and send it to your next debt (snowball effect), until its paid off. Now you have freed up even more cash flow, which you then roll over to the next debt needed to be paid off, and it keeps going until you have paid all your debt off.

That is cash creation , with a side of discipline.  All with a skipped payment, escrow refund, and that little monthly savings on your mortgage payment.

Now obviously this may not work for everyone and your reasons to refinance may be for a different reason.  If you have any questions or would like to have a mortgage analysis to see if refinancing is a good option for you, contact us.