Denver Home Mortgage

Everywhere you turn you can read about the fact that Denver mortgage rates are at historic lows and that now is a great time to refinance. And with all the effort that has gone into creating programs to try to help struggling homeowners, even if you think you aren’t able qualify for a Denver refinance right at this moment, it would be worth calling and talking to a mortgage professional just to be sure. You never know, you might be pleasantly surprised.

Now, the next question to consider after you decide that it makes sense for you and you are going to refinance your Denver mortgage, is what to do with the savings you’ll be getting. That may sound like a silly question, but trust me, if you’re not careful it is very easy for that extra money to just ‘evaporate’ at the end of each month and not really have much impact on your situation.

A couple of different suggestions as to how you might apply that money to your ‘big picture’ were made in previous articles. In each example we used the hypothetical number of $175 in monthly savings from your new, lower rate Denver home loan. While that amount of savings is pretty good, it’s probably not enough to make many people overly excited. On the other hand, we showed that with a bit of disciplined effort, it could become something quite substantial that you could legitimately get excited about.

In our first example applied the money to pay off existing credit card debts. For our example we used two cards with interest rates of 12% and 16% carrying balances of $4000 and $8000 respectively. In that example we applied the $175 per month to the minimum payments and reduced the pay back period from 23 years to just over 4 years.

The second example showed how you could apply that savings toward the principle balance on your Denver mortgage to pay it off sooner. Our example was of a loan amount of $225,000 at 5% fixed. When we applied the $175 per month savings to the principle, we shaved over seven years off the mortgage and paid it off in just under 23 years rather than 30. Those 7 years of not paying on the mortgage equates to a savings of over $58,000.

The last option we will talk about is putting that money to work by investing it. You could be investing with any number of goals ranging from a college fund for a child to your retirement. Your investment motivations are completely your own; we simply want to show you what could be accomplished with this money.

In this example, we have to guess at what your overall return might be, but we’ll use some conservative numbers.

Let’s say that for the next 18 years you’re going to add $175 to an account that already has $2000 in it (working on a college fund for a new baby). For our conservative average annual return we’re going to use a rate of 7%.

So what does baby have waiting when they turn 18? A bit over $83,000! That’s a pretty good start for college, I would say.

Now let’s look at a 30 year old who is looking to retire at age 65. We’re also going to say that this account is starting off with a balance of ZERO, but it gets the $175 savings added to it each and every month. Doing nothing else for this account or your retirement, by the time you were 65 this account would be worth more than $300,000. Again, not too bad.

You need to remember that the numbers above are just for illustrative purposes; your results may vary. However, they are very attainable. If they have whet your appetite at all for what you might be able to accomplish, you really should sit down with a Denver mortgage planner as well as an accountant or financial planner.

The main point that we hope you get here is that while some savings may appear to be rather insignificant at first, if you apply yourself properly, you can have a dramatic positive effect on your long term financial well being. Your Denver home mortgage is more than a bill; it should be part of your overall financial plan.

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