Expert explains how refinancing your home could potentially put more money in your pocket

How to get money our of your home (Ralph Kelly Unsplash , Copyright 2022 by WDIV ClickOnDetroit - All rights reserved.)

Many people make a New Year’s resolution to save money, pay off credit card bills that are coming in after the holidays, and just get their finances in order in general.

For homeowners, there are some easy ways to make that happen, and even get some extra cash.

With house values rising and interest rates still relatively low, this is a good time to consider refinancing, according to David Hall, one of the experts at Hall Financial. He said 13 million people are eligible to refinance their homes, and while it can reduce monthly payments, it could also end up saving homeowners more than $3,000 a year.

Depending on whether someone wants to lengthen the term of their loan to lower their monthly payments, or pay it off more quickly in hopes of paying less overall, refinancing gives homeowners a lot of wiggle room to help them control their finances.

Homeowners should compare their current interest rate with the new ones being offered, to see if it makes financial sense for them.

For those who need money now, there’s a cash-out refinance plan. This type of refinancing is great for those who are considering remodeling their home or paying off high-interest debt.

Interest rates are currently very low, hovering in the 3% range. Plus, many homeowners gained $30,000, on average, in home equity last year.

Hall said for those who opt for a cash-out refinance, they could get $10,000 while only adding about $40 to their monthly bill.

For more information on refinancing and specific options, click or tap here, or call 866-225-5425.