Dallas Home Mortgage Assistance

If you’re looking to save money on your monthly housing expense, refinancing a Dallas mortgage is a great way to go about it. It’s always nice to have a bit more money left at the end of the month. If you’re not careful, this extra cash can easily just get absorbed into your day-to-day expenses. On the other hand, if you are careful and disciplined, this extra money can go a long way towards helping your overall financial situation. Below you will see a few of the possibilities.

The biggest thing to realize is that it doesn’t take a lot of money every month to have a significant impact on your long term situation. There are three primary considerations for how to apply your new found savings to best impact your long term financial goals.

1. Paying off (or down) other debt that you have at a higher cost, such as credit cards

2. Apply it towards paying down the principle on your mortgage

3. Investing the savings to address future goals such as college tuition or retirement

If you do carry other debt like car loans or multiple credit cards, you should compare everything from the interest rate to the minimum payments necessary to the outstanding balance of each against the other. Assuming you’ve been making just the minimum required monthly payments on these, you should now organize them by interest rate, going after the highest one first.

Let’s say that you have balances on 3 credit accounts as follows: Credit Card 1 with a $4,000 balance at 16%, Second Credit Card totals $8,000 at 12%, and finally a car payment on a loan of $21,000 at 4%. Let’s also say that through your mortgage refinance you’ve been able to gain a savings of $175 per month.

If you were making just above the minimum payments on your 2 credit cards, it would take you 23 years to pay them off (assuming you didn’t add anything to the balance over that time). If you were to decide to use that $175 to regularly apply towards these existing debts in an effort to pay them off, this is how we would recommend you approach it:

Pay off the higher interest rate card first while still making minimum payments on the second. When you’ve paid off the first card, start applying the $175 to the second, plus the minimum payment you had been making on the first. By doing this, you could pay off both cards in just over 4 years. That’s a whole lot less than twenty-three! Consider how much money you’ll be saving in interest payments over those 19 years…

It’s pretty obvious that a Dallas mortgage refinance can help your situation in the short term, but now you can see how much it can have an impact on your long-term financial health as well.