4 Smart Things to Do After You Refinance Your Home
Refinancing is going to have a huge impact on your monthly budget, and your new home loan could free up an incredible amount of cash in the coming years. If you have recently decided to refinance, then it is time to start thinking about what you should do with that extra money.
Pay Off Some of Your Debt
One of the best ways to improve your financial situation after refinancing your home is to pay off any debt that has high-interest rates.
That type of debt is usually from credit cards, but you might also have some unmanageable student or car loans.
Most experts agree that paying off those loans should be your priority.
After the loans have been wiped out, you can then think about investing your money.
Improve Your Home’s Efficiency
If your utility bills have skyrocketed in recent years, then you might want to consider improving the efficiency of your home.
Switching over to high-efficiency appliances is a relatively simple project, and those devices could end up saving you hundreds a year.
You should also consider installing solar panels. Residential solar arrays are more efficient than ever, and they can often be installed in a matter of days.
Increase Your Home’s Value
After you refinance your home, you might free up quite a bit of equity.
Once you have access to that equity, you can carry out a few projects to greatly increase the value of your home.
Giving your kitchen a facelift is an excellent option for increasing your home’s resale value, and you probably won’t need to hire a contractor for that type of renovation. You can also update the roof if it is more than 20 or 30 years old.
Invest in a 529 Plan
A 529 plan is an investment vehicle that allows you to put money toward your child’s higher education.
Over the course of 10 or 15 years, one of these plans can generate an incredible amount of wealth.
Many states even offer huge tax credits to those who invest in 529 plans, and that could save you thousands in the coming years.
In addition to these few tips, you should also take a close look at your credit score after you refinance your home.
Refinancing will most likely impact your credit for a short period of time, and you want to be absolutely sure that your score climbs back up within a few months.
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Category: Mortgage
