Sounds a bit counter productive doesn’t it? How can increasing your interest rate help you to cash flow $950 a month? Surely a higher interest rate would lead to more monthly expenses, not less. Let us explain! 

We had borrowers who we helped purchase a home a few years ago. Since we are fantastic at our jobs, we locked in their interest rate at a 3% on their purchase! But they were in a bit of a pickle; They had racked up $80,000 dollars’ worth of high interest credit card debt that was killing their monthly cash flow. So, if they wanted to pay off their cards, they had two good options. Either they could tap into their home’s equity with a cash out refinance or take out a Home Equity Line of Credit on the home. It was our job to find out which option would be the best for them. In this case, even though they would be increasing their interest rate significantly, it was actually mathematically more effective to go with the fixed interest rate cash out refinance. While their principal and interest payment did increase on their mortgage, they were able to save $950 per month getting rid of that nasty credit card debt!

That is the kind of outside the box thinking that we at Chissell Mortgage Group pride ourselves on. Now, not everyone will benefit by increasing their interest rate on their mortgage. However, it is imperative to look at all options on the table so that we can contour a plan that is specific to your goals. 

As always, If you would like to have us review your monthly cash flow or have any questions at all about mortgages, please call us at Chissell Mortgage Group at 727-376-6900.

NMLS ID: 327290; NMLS ID: 2062741

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