Here are three options you can choose from RIGHT NOW to increase your liquidity, and your cash on hand using your home.
- Do a cash-out refinance. Yes, a cash-out refinance might have a higher interest rate; but when used as a financial strategy, that does not matter. What if you could pay off all other debts and/or add cash to your savings account right now. Equity in your home is illiquid, locked up and not serving you. If we could instead convert equity to cash to pay off debts, we could save hundreds, if not thousands, of dollars a month. If rates continue to be low, and I feel strongly they will, we can then do a refinance in six months to lower your payment and secure your financial future.
- Get a HELOC. A HELOC is a Home Equity Line Of Credit. This is a second loan that sits on top of your current first mortgage. It is typically a variable interest rate and acts like a line of credit you can draw from. You can get a HELOC on a primary home, second home or investment. There are several second lenders who are no longer originating. Don't worry! There are others who are, and I have the list. Feel free to reach out, I can provide the best referral options.
- Request a Mortgage Forbearance. This needs to be requested through your Servicer.. the company you write your checks to each month. Forbearance allows you, the borrower, to apply for a pause in mortgage payments without the risk of negative credit reporting and foreclosure proceedings. The length of time available will be determined by the duration of this crisis.
Please know we are here to serve you in any way we can, including pointing you to the appropriate resources. Wishing you and your family good health and stability.
The Rueth Team of Fairway Independent Mortgage Corporation
750 W Hampden Avenue, Suite 500
Englewood, CO 80110