The Holidays are Coming: Here’s How Your Mortgage Can Help

The holiday season is just around the corner, and so are all the costs that come with it. Fortunately, if you’re a homeowner, your mortgage might be able to help with that.

Your mortgage (and the house it pays for) can be great resources to tap around the holidays — especially if you’re thinking of using high-interest credit cards instead.

Are you in need of a little extra money this holiday season? Want to avoid the high costs that come with credit cards? Here’s how your mortgage can help you out.

1. By giving you cold, hard cash.

A cash-out refinance is the first option you might consider if you’re looking for some extra holiday help. With these loans, you simply replace your existing mortgage with one that’s higher than its current balance. The difference between the two amounts? You get a percentage of that back in cash, depending on the value of your home.

Use it toward presents for your family, holiday travel, or even just sprucing up your home before the celebrations. The money’s yours to use how you see fit. (Plus, you may be able to do it without raising your monthly payments at all if you choose the right term and qualify for a lower rate than you had previously!)

2. By lowering your housing costs.

A simple refinance is also a great option. With this type of refinancing, you can potentially lower your interest rate, refinance into a longer loan term, or even get rid of your private mortgage insurance, thus reducing your monthly payment and freeing up more resources for that holiday shopping. An even better benefit? You’ll enjoy that lower payment for years to come if you get a fixed-rate mortgage. (Imagine what you could do with another few hundred dollars a month!)

3. By combining your debts and freeing up cash.

If you’re dealing with lots of debt — think several credit cards, loans, your mortgage, and other financial products — then you’re probably wasting a great deal of money on interest. Refinancing your mortgage can allow you to combine these debts and reduce the interest you pay over the long haul. Considering the historically low rates currently available on mortgage loans (often significantly lower than the rates on credit cards and personal loans), this could lower your monthly costs as well.

The Bottom Line

The holidays (and the costs that come with them) don’t have to be so stressful — especially if you own a home. Want to learn about the ways you can use your house and mortgage to help with those seasonal costs? Get in touch with a loan expert at Embrace today.