So, you are considering refinancing your mortgage. If you are at this stage, you want to refinance for one reason: saving money. This is a situation where no matter what you choose, you win! Refinancing means you may have the option to either lower your payment or choose a shorter term. The one that you choose should match your unique situation. Here is a list of things to consider that will play a big part in your final decision: How stable are your income and/or expenses? How much wiggle room do you have in your monthly budget? Are you saving for emergencies, home improvements, college? How long do you plan to stay in the home? How long have you had your current mortgage? Lower Monthly Payment The main benefit of lowering your payment is that you free up money in your monthly budget for other things. Knowing your budget will help guide you to the right decision. If you have fluctuating expenses or income, a lower payment can look attractive. Every homeowner should have an emergency fund to handle the unexpected. If you are saving up for something, like an emergency fund, a college fund for the kids or for home improvements, a lower monthly payment can be a great way to help fund those savings. Shorter Term Depending on what your current rate is, today’s low interest rates can mean that with a shorter-term loan, you can end up with a similar mortgage payment to what you pay now. This can be a great option if you: have been in the home years – if you are 8 years in on a 30-year loan, a 20-year term might make more sense and save you money for the life of the loan have wiggle room in your monthly budget have an emergency fund and no need save chunks of money for upcoming expenses like college are looking to stay in your home beyond the length of the term – a shorter loan will mean more payment-free days in you home down the line The advantages of a shorter term is that you will pay less overall for the life of the loan and you will be done paying sooner. Think about what it would be like 20 years from now not having a mortgage payment. This may be a great option if your goal is to retire early. Other Ways to Save Money on Your Loan A shorter-term loan is not the only way to reduce the overall cost of your mortgage. You can also make additional principal payments that will reduce the length and cost. A lower monthly mortgage payment can give you flexibility to handle changes in income, expenses and your family’s priorities. Consistently paying additional principal payments takes discipline. If you know that you will likely be tempted to spend the money you would save on a lower payment and your goal is to pay your mortgage off as soon as possible, a shorter term will lock you in and eliminate temptations.

Is this year the year you get serious about saving for a new home or bigger one? Start with a goal for what your want to save for a down payment. After you close, you will want to have a cushion in savings, so add that to the total. Next, create a realistic budget and then get saving. With a plan, you will be surprised how quickly you can make your home-buying dreams a reality! Here are some tips on how to get started: 1. Get New Insurance Rate Quotes - automatically save the difference. 2. Divert Your Annual Raise – dunk the extra you are already living without into your savings. 3. Save What You Aren't Spending – no commute or wardrobe expenses? Deposit those $$. 4. Sell Your Stuff - use Facebook Marketplace, Ebay or even a garage sale! Bank the bucks. 5. Skip the daily coffee run – adds up quick: $5/day x 5 days/week x 52 weeks = $1,300/year! 6. Reserve Your Refund – in 2020, the average individual refund was $2,707. Stash that! There are tons of ways to save a little extra here and there, but the key is to do that automatically. Today’s banking apps make it easy to “pay yourself first” and monitor your progress. You will thank yourself when you are in your new home!

Your home is not just a place to live, it is often your largest asset. Home equity is one of the best ways to build wealth, but value appreciation is based on an ever-changing market. The number of homes available, the number of people looking for homes, interest rates, and the economy play important roles in the value of your home. One important way to improve the value of your home is maintenance and improvements. Curb appeal tops the list according to James Murrett, president of the Appraisal Institute, a professional association for real estate appraisers. A great-looking home invites buyers to come in and see the inside. The outside of your home takes a beating from the elements, so it is important that you maintain the outside as well as the inside. It is a good idea to have a reputable contractor out to look at your exterior if there’s been a storm with hail or high winds. Typically, this is a complimentary, no-obligation visit. They will be able to tell you if you need to involve your insurance company and can guide you through that process. Ashton McGee of Ashton McGee Restoration Group sees his greatest value to home owners as providing a consultative experience through the insurance process, stating “It’s important for us to be a company that will inform consumers of their rights and educate them on the process.” He and his team work hard to build credibility with local adjusters to improve communication and set expectations. An exterior remodel can really increase the value of your home and provide that “wow” factor. Home buyers are looking for homes that are low maintenance. If you are going to update the exterior, be sure to ask about options that are low- or maintenance-free. Maybe you don’t need new siding, but if your home looks dull next to your neighbor’s, a fresh coat of paint on the front door might be in order. Don’t forget about landscaping and maintaining your lawn. Planting some flowers is a great way to spruce up your yard.