Your Home as Income Source

February 26, 2009 · Print This Article

In the current financial crisis, many people have seen their income and assets shrink. While price levels continue to increase, employees are unlikely to receive commensurate pay raises. Many working people have lost their jobs or have been forced to take lesser paying jobs. Retirees have seen their investments’ values go down, and reduced receipt of interest and dividends.

The one primary asset for most people is the home they live in. As an asset, it can make sense to generate some cash flow if you are in a position to refinance Nashville area real estate. Nashville home loans are available at the lowest rates seen in decades. When you refinance your Nashville home loan, you can actually generate some income in two ways. The first way is actually cost reduction, i.e. increasing your available income by reducing your monthly mortgage expense.

The second possible way to generate cash with a new Nashville home loan, is dependent on how long you have lived in your home and how much you have paid on your home’s principle value. Your equity in your home is the amount or portion of the home’s value that you have paid off via down payment, regular monthly payments, and any pre-payments you have made. The home’s total value can be determined by appraisal, and your equity is the appraised value minus the balance remaining on your current mortgage.

If you find that your equity is high enough, you can refinance. Nashville real estate refinancing is generally available up to 80 percent of the appraised value. A homeowner can obtain a new Nashville home loan, “cashing out” some money, while keeping monthly payments low by accessing the new lower mortgage rates.

Contact me to discuss whether you are in a position to refinance Nashville real estate at new lower rates. Senior Mortgage Broker Terrence Askew can assist you in person at 615-942-2210. Browse the accompanying pieces on this site Your Money Source and call Terence for further information or to begin the application process.

Written by Terrence Askew