I’m not here to argue about what causes inflation – I’m here to tell you that there are ways to mitigate the rising costs of living by using the assets you already have and the tools at your disposal to their fullest.
Here’s a real-world personal example. I’ve got a 2017 Ford Fusion Energy Plug-In Hybrid electric vehicle that holds 13-ish gallons of gas, and I’ve been normally spending between $28-$36 each fuel up. But this last time, I spent $51. Over $50??? Holy cow!
I told that story to my Dodge Ram 1500-driving Father and he scoffed at me – “Only $50?… Ha! That’s nothing – I’ve got the 32-gallon tank in my truck – it cost $150 for me to fill up!” This is coming from a man living on a fixed income who has to go to VA doctor’s appointments 3 times a week and he’s a part-time amateur chef for my mother.
I did the math in my head – truck payment, fuel, food, rising credit card debt due to higher prices on a fixed income… he’s really hurting financially but he’s so full of pride, he wouldn’t even THINK of asking his only son for options on refinancing his home to get some extra cash to combat the extra cost of living we’re experiencing right now. He’d much rather bite the bullet and keep dipping into his retirement savings. The real question here is – how much will these extra dips truly reduce the length of his savings?
Here’s how we could help him (and you) combat this:
A cash-out refinance using his VA Benefits: With home values at all-time highs, this option gives him plenty of extra cash buffer to cover his monthly expenses. Plus it can consolidate his credit card debt and his expensive truck into a small mortgage (relatively speaking) since he owns his house outright.
Because he’d be using his VA Benefits, we can do a streamlined refinance when the market settles back down during its next downturn cycle – dropping his interest rate even lower and reducing his monthly payment even further.
You don’t have to be a Veteran to take advantage of this option. Your home’s equity could save you significant cash each month, even at a higher mortgage rate than you’re currently paying. For example, if you have $400 in credit card payments, a student loan, a car loan, etc., you could pay these off with a refinance and lower your overall outgoing monthly bill payments. This is something I explain to Veterans and non-Veterans EVERY DAY – some understand it and are happy to have the relief. I consider it my duty to help provide relief, comfort, and a pathway to better financial options so that my clients can thrive in this rough inflationary period.
That’s what drives me every day. I am happy to run the numbers on your specific scenario. Call or text me anytime at (913) 276-4340
Keep the faith!!!
Sr. Loan Officer
This weekly Sponsored Column is written by Fountain Mortgage. Located in Prairie Village, Fountain Mortgage is dedicated to educating, and thus empowering, clients to make the best financial decision possible for their situation. Contact Fountain today.
Fountain Mortgage NMLS: 1138268
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