LET'S PAY FOR COLLEGE - Figure it out

College certainly can put a strain on most of our pockets. We as parents don’t want to make it difficult on ourselves or our children. Provided you have lived in your home for a while, by refinancing your mortgage you could get access to your equity. This would give you a low cost loan that could pay your student’s way through his or her college years; and it may even allow you to reduce your monthly payments.

Equity

The equity in you home, builds up each year that you live there, and it may be able to provide you with all the money you need for college expenses. If you have quite a few years there, you may be able to pay more than one college bill. In order to calculate your equity quickly all you need to know is the difference between the fair market value of your home now and the balance you owe on your mortgage. Multiply that number by .80; this is 80% of your equity. If the lender allows you more than this you will need to pay for (PMI) private mortgage insurance.

Interest Rate

If you watch the market interest rates to choose the best time to apply for the mortgage refinance. You could reduce your monthly payment, thereby reducing the total amount owed and gain valuable knowledge by reading Mortgage loan tips.

You can apply for a fixed or adjusted rate mortgage but now would be a good time to get into something that will provide equal payments throughout the term of the loan. Therefore, a fixed rate mortgage would be more economical.






How much

The main focus here is college expenses, but you may also want to complete other projects that will use more cash than you currently have on hand. Even if you want to take a long vacation or to get rid of credit card debt, or other personal expenses, now is the time to get the money.

Reduce your maturity date

If you have a 30 year loan, after you have read Mortgage secrets exposed; you may want to reduce it to a 15 or 20 year loan. This will result in tens of thousands of dollars saved and allow you to get out of debt quicker, as long as you remain in the house at least 5 to 10 years longer.

Research

Try and find the best lender, some charge excessive fees, and the terms may not be advantageous. Therefore it is good to get quotes from the internet. Ask questions, talk to your current lender, mortgage brokers and friends that have refinanced. Stay informed and read the Home buyer defense guide.

Happy Surfing,