Looking to Bolster Your Cashflow With a Home Mortgage Refinance? - wave3.com-Louisville News, Weather & Sports

Looking to Bolster Your Cashflow With a Home Mortgage Refinance? Consider These Tips

Looking to Bolster Your Cashflow With a Home Mortgage Refinance? Consider These Tips

Looking to Bolster Your Cashflow With a Home Mortgage Refinance? Consider These Tips

There is no such thing as free money. But refinancing your mortgage to get a lower interest rate is just about as close as you can get.

The average interest rate for the benchmark 30-year fixed mortgage was 3.78 percent this week, according to the most recent national weekly mortgage survey from Bankrate.com, the online personal finance resource headquartered in North Palm Beach, Fla. That average includes 0.37 discount and origination points. With mortgage interest rates hovering below 4 percent, refinancing your home mortgage right now can lower your monthly payment and free up capital for your business. 

Since the credit crunch hit several years ago, it's been largely difficult for many business owners to secure a mortgage refinancing. While interest rates remain at near-historic attractive levels, approvals haven't gotten appreciably easier.

Consider these tips for how to take advantage of low mortgage rates as an entrepreneur.

1. Document your income. 
This is potentially the biggest pothole for entrepreneurs and small-business owners trying to refinance their home mortgage, says Greg McBride, the senior financial analyst at Bankrate.com. Entrepreneurs that are just launching their business often go without an income for a while and many small-business owners that have been around for a while don’t pay themselves much of a salary in hopes of lowering their tax bill. That can make getting a mortgage refinanced very difficult, says McBride.

2. Maintain a solid credit score.
Many new entrepreneurs get off the ground by maxing out credit cards and running on debt for a while. But, to be able to refinance your home, you still need to have a healthy credit score. “If you have a credit score of 700 or better, you are going to get probably the lowest rate you have ever seen,” McBride says. To polish your credit score, pay your bills on time. You can also improve your credit score by paying down credit card debt, but be sure to not completely wipe out your cash reserves, says McBride.

3. Consider government refinance programs. 
To be able to refinance your home mortgage, you need to have equity in your existing home. In other words, when you have your home appraised, you need to owe less on your home than what it is considered to be worth right now. If that is not the case, you can consider a couple of government refinance programs, which are help residents that are “underwater” secure access to lower interest rates, says McBride.

One such program is the Home Affordable Refinance Program (HARP), which is run by the federal Treasury and the Housing and Urban Development departments. The other is the streamlined refinance program offered by the Federal Housing Administration. 

4. Choose your lender carefully. 
Start with the bank that you already have a business relationship with, says Keith Gumbinger, the vice president of Riverdale, N.J.-based HSH.com, an online mortgage resource. Alternatively, ask members of a local trade group or association you might be a member of who they have had luck with. Also, a mortgage broker can help you survey your options, as opposed to going to one specific bank, Gumbinger says to Entrepreneur.com in an email.

5. Be organized. 
With historically low interest rates, most banks are dealing with a flood of refinance applications. To ensure that yours gets processed expeditiously, have all of your paperwork pulled together ahead of time. “If you get your paperwork in order, your file is the one that is going to get worked,” McBride says. That includes proof of income, tax returns, pay stubs if you have them, bank statements and statements for any other financial accounts and outstanding loans, he says. 

This information is not to be used as investment advice, but for informational purposes only. Republic Bank & Trust Company prohibits the dissemination, distribution or copying of this document without the Bank’s prior written consent. Please consult your financial or tax advisor for further information. Member FDIC.

  • Republic Bank Money Matters PersonalRepublic Bank Money Matters PersonalMore>>

  • Choosing a Checking Account that Works for You

    Choosing a Checking Account that Works for You

    Choosing a Checking Account that Works for You

    Thursday, August 6 2015 1:18 PM EDT2015-08-06 17:18:30 GMT
    Monday, February 22 2016 11:59 AM EST2016-02-22 16:59:45 GMT

    Today there are more banks available to us than ever before.

    More >>

    Today there are more banks available to us than ever before.

    More >>
  • Local Banks Have More to Offer Local Customers

    Local Banks Have More to Offer Local Customers

    Local Banks Have More to Offer Local Customers

    Thursday, August 6 2015 1:21 PM EDT2015-08-06 17:21:23 GMT
    Monday, February 22 2016 11:58 AM EST2016-02-22 16:58:54 GMT

    As a resident of the Louisville region, you’re committed to the growth and vibrancy of your community. 

    More >>

    As a resident of the Louisville region, you’re committed to the growth and vibrancy of your community. 

    More >>
  • Sample Budget

    Sample Budget

    Sample Budget

    Thursday, August 6 2015 2:03 PM EDT2015-08-06 18:03:21 GMT
    Monday, February 22 2016 11:58 AM EST2016-02-22 16:58:23 GMT

    Sample BudgetSaving is easy when you learn how to track and manage your budget.  Use the sample below to help identify and manage your expenses, and prepare for your future.  Once you know where your money is going, you can begin to analyze your expenses and find ways to cut back. When you’ve reviewed your expenses, the next step is to look at how much you can begin saving, which will then be included in your overall budget.

    More >>

    Sample BudgetSaving is easy when you learn how to track and manage your budget.  Use the sample below to help identify and manage your expenses, and prepare for your future.  Once you know where your money is going, you can begin to analyze your expenses and find ways to cut back. When you’ve reviewed your expenses, the next step is to look at how much you can begin saving, which will then be included in your overall budget.

    More >>
  • Republic Bank Money Matters Savings,cds,money market accountsRepublic Bank Money Matters Savings,cds,money market accountsMore>>

  • There’s Still Time (and Money) to Start Your Savings Account

    There’s Still Time (and Money) to Start Your Savings Account

    There’s Still Time (and Money) to Start Your Savings Account

    Thursday, August 6 2015 2:59 PM EDT2015-08-06 18:59:10 GMT
    Monday, February 22 2016 12:03 PM EST2016-02-22 17:03:35 GMT

    There’s Still Time (and Money) to Start Your Savings AccountIf you often worry that you're not saving enough, you're not alone. The average American saves around 5 percent of their income, but that statistic can be misleading.

    More >>

    There’s Still Time (and Money) to Start Your Savings AccountIf you often worry that you're not saving enough, you're not alone. The average American saves around 5 percent of their income, but that statistic can be misleading.

    More >>
  • Making the Most of Your Traditional IRA

    Making the Most of Your Traditional IRA

    Making the Most of Your Traditional IRA

    Thursday, August 6 2015 2:45 PM EDT2015-08-06 18:45:55 GMT
    Monday, February 22 2016 12:03 PM EST2016-02-22 17:03:01 GMT

    Your retirement plan doesn't have to be just your 401(k) or your pension. Savvy investors can diversify their plan to save for their golden years by setting up a traditional individual retirement account (IRA).

    More >>

    Your retirement plan doesn't have to be just your 401(k) or your pension. Savvy investors can diversify their plan to save for their golden years by setting up a traditional individual retirement account (IRA).

    More >>
  • How to Find the Right Mutual Funds for You

    How to Find the Right Mutual Funds for You

    How to Find the Right Mutual Funds for You

    Thursday, August 6 2015 2:43 PM EDT2015-08-06 18:43:08 GMT
    Monday, February 22 2016 12:02 PM EST2016-02-22 17:02:29 GMT

    How to Find the Right Mutual Funds for YouA mutual fund can be a wise way to invest your savings for the long term, whether it's for your retirement or your child's college expenses. However, there are thousands of funds on the market. It's critical to find the right fund or funds so you can maximize your savings and get your ideal return on your investment.Before deciding on a plan, you need to identify your objectives and time frame.

    More >>

    How to Find the Right Mutual Funds for YouA mutual fund can be a wise way to invest your savings for the long term, whether it's for your retirement or your child's college expenses. However, there are thousands of funds on the market. It's critical to find the right fund or funds so you can maximize your savings and get your ideal return on your investment.Before deciding on a plan, you need to identify your objectives and time frame.

    More >>
  • Republic Bank Money Matters MortgagesRepublic Bank Money Matters MortgagesMore>>

  • Mortgage Loans Made Easy

    Mortgage Loans Made Easy

    Mortgage Loans Made Easy

    Thursday, August 6 2015 3:07 PM EDT2015-08-06 19:07:32 GMT
    Monday, February 22 2016 11:56 AM EST2016-02-22 16:56:30 GMT

    There are two components to your total mortgage loan: the actual dollar amount that was borrowed (the principal) and the amount of interest that you are paying the bank to borrow the money.

    More >>

    There are two components to your total mortgage loan: the actual dollar amount that was borrowed (the principal) and the amount of interest that you are paying the bank to borrow the money.

    More >>
  • What is APR?

    What is APR?

    What is APR?

    Thursday, August 6 2015 3:12 PM EDT2015-08-06 19:12:19 GMT
    Monday, February 22 2016 11:55 AM EST2016-02-22 16:55:57 GMT

    APR is short for annual percentage rate. It's a formula that considers some of the costs of acquiring a loan along with the actual rate   of the loan,  then translates those costs into the equivalent rate for a loan without those costs. It's an attempt to provide a standard for comparison.

    More >>

    APR is short for annual percentage rate. It's a formula that considers some of the costs of acquiring a loan along with the actual rate   of the loan,  then translates those costs into the equivalent rate for a loan without those costs. It's an attempt to provide a standard for comparison.

    More >>
  • Looking to Bolster Your Cashflow With a Home Mortgage Refinance? Consider These Tips

    Looking to Bolster Your Cashflow With a Home Mortgage Refinance? Consider These Tips

    Looking to Bolster Your Cashflow With a Home Mortgage Refinance? Consider These Tips

    Thursday, August 6 2015 3:04 PM EDT2015-08-06 19:04:32 GMT
    Monday, February 22 2016 11:55 AM EST2016-02-22 16:55:27 GMT

    Looking to Bolster Your Cashflow With a Home Mortgage Refinance? Consider These TipsThere is no such thing as free money. But refinancing your mortgage to get a lower interest rate is just about as close as you can get.

    More >>

    Looking to Bolster Your Cashflow With a Home Mortgage Refinance? Consider These TipsThere is no such thing as free money. But refinancing your mortgage to get a lower interest rate is just about as close as you can get.

    More >>
  • Republic Bank Money Matters DebtRepublic Bank Money Matters DebtMore>>

  • Tips for Keeping Teens Out of Credit Card Debt

    Tips for Keeping Teens Out of Credit Card Debt

    Tips for Keeping Teens Out of Credit Card Debt

    Thursday, August 6 2015 3:25 PM EDT2015-08-06 19:25:36 GMT
    Monday, February 22 2016 11:50 AM EST2016-02-22 16:50:22 GMT

    Tips for Keeping Teens Out of Credit Card DebtThe financial landscape can seem complicated for even the most seasoned among us, but for teens it can be particularly cumbersome.  Teens are vulnerable to nefarious activities and puzzling concepts.  These simple tips can help you to ensure your teen develops a good financial base of knowledge as he/she prepares for their future.

    More >>

    Tips for Keeping Teens Out of Credit Card DebtThe financial landscape can seem complicated for even the most seasoned among us, but for teens it can be particularly cumbersome.  Teens are vulnerable to nefarious activities and puzzling concepts.  These simple tips can help you to ensure your teen develops a good financial base of knowledge as he/she prepares for their future.

    More >>
  • When is the Best Time to Refinance?

    When is the Best Time to Refinance?

    When is the Best Time to Refinance?

    Thursday, August 6 2015 3:23 PM EDT2015-08-06 19:23:36 GMT
    Monday, February 22 2016 11:49 AM EST2016-02-22 16:49:39 GMT

    When is the Best Time to Refinance? Interest rates on mortgage loans are still at historically low levels and are even lower today than they were a year ago on longer-term loans, according to Freddie Mac.

    More >>

    When is the Best Time to Refinance? Interest rates on mortgage loans are still at historically low levels and are even lower today than they were a year ago on longer-term loans, according to Freddie Mac.

    More >>
  • 6 Ways to Dig Out of Debt

    6 Ways to Dig Out of Debt

    6 Ways to Dig Out of Debt

    Thursday, August 6 2015 3:14 PM EDT2015-08-06 19:14:28 GMT
    Monday, February 22 2016 11:49 AM EST2016-02-22 16:49:06 GMT

    With lenders tightening the reins on borrowers and prices for everything from materials to health care on the rise, many small-business owners are straining under the weight of growing debt.

    More >>

    With lenders tightening the reins on borrowers and prices for everything from materials to health care on the rise, many small-business owners are straining under the weight of growing debt.

    More >>
Powered by Frankly