Before we get into the nitty gritty of what exactly a refinance is, let me tell you a story.
One of our sellers, who made his career in real estate development, bought a lot of land in Alexandria in 1989 and built his own home from the studs up in 1990. As some of you might remember, mortgage rates in 1989 were not so spectacular. For those of you who don't know, imagine closing on a house with an interest rate of 15-18%. Makes your current mortgage rate seem a whole lot more manageable, doesn't it? But our seller wasn't deterred because he knew the process of refinancing. Our seller told us that he kept all of his bank documents on hand and refinanced every time the bank rates dropped. Every time!
So, with that, let's get into what a refinance is and how you can work it to your financial advantage.
A refinance has a simple definition: revising the terms to an existing credit agreement in the form of a new loan at a lower rate of interest. How can you refinance? The process is almost as simple as the definition: when bank rates drop, call your lender and file the paperwork to refinance your home.
Sounds easy right? Well that's because in the grand scheme of homeowning, it is the simplest way to invest in your home purchase. Refinancing your home loan can oftentimes lead to lower monthly payments, allowing you to readjust your home budget for a multitude of things, including home renovation projects, savings, or bigger payments towards your Principal & Interest.
This year, we are looking for more introductions to those who need expert assistance on their biggest financial transaction. So we are asking you, our wonderful readers, to introduce us to any friends, family, coworkers and people you know who are looking to sell or purchase in the new year. As busy as Jillian Hogan Homes may get, we are never too busy to take your call.
PS: Interested in directly asking Jillian your questions about real estate? Join us at our annual Real Talk as we break down your market concerns and help you find your own customized path.
Til' Next Time,
Jillian
Every month Jillian Keck Hogan shares local real estate insight, advice, and more. To learn more about Jillian and her team, visit jillianhoganhomes.com and follow her real estate group on Instagram @jillianhoganhomes. Equal Housing Opportunity.
