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New Year = New Mortgage Strategy

New Year = New Mortgage Strategy

New Year = New mortgage strategy is a fabulous blog full of interesting insights and relevant topics for any month of the year ~~ JaCi Wallace. Enjoy! While Covid-19 plunged the United States into a recession, the housing market exploded because of historically low housing supply and lower mortgage rates. Although this has been very nice for folks who own homes, it’s been problematic for the growing number of buyers who are being shut out of the housing market altogether. I will save that puzzle for another day, as I want to talk about Mr. and Mrs. Homeowner and what they do now with this unprecedented appreciation they are sitting on. 

Side note 

I recommend this quick read by Laurie Goodman, the VP of the Urban Institute, where she notes that homeownership is one of the most effective ways to build wealth and stability. According to the US Census Bureau in 2015, the median net worth for a homeowner is 80 times that of a renter. Now, that is striking.

I digress. Now, for you homeowners, let’s get into all that equity you have accumulated. With the new year approaching and, I am sure, a few New Year resolutions, why not make improving your financial future one of them? Maybe pay off some of those high-interest rate credit cards, increase your cash flow, or pay a little extra in principal to drive the balance of your mortgage down – and build a nest egg of equity to be used in the future. Even with higher rates, a new mortgage may make sense. I recommend that my clients review their mortgage options every year to maximize their savings.


Maybe you don’t have a firm grasp on your home’s value or built-in investment opportunities. This free tool is something most of my clients use to track their wealth by keeping an eye on their homes value, loans, equity position, and market trends – Click here. (In case you overlooked it, It’s free, and the information is specific to your property and debt!)

Let’s keep this super simple for now and examine the following items:

#1) Future Goals 

Do you think it’s time to use some of this equity to buy up and get into that forever home or neighborhood you have been dreaming of? Or maybe it makes sense to tap into your equity to help with your child’s education or build that additional bonus room onto your existing home or a new kitchen and bathrooms to modernize your home; the list goes on. My wife reminds me that dreams are free, so dream big! Then consult your favorite mortgage professional or financial planner to assist you.

#2) Your Current Debt Levels

Look at your current unsecured credit cards, lines of credit, and possibly vehicle loans (probably not). Don’t pay more interest if you can tap into your equity and dramatically reduce your bottom line, and allow your income to serve you better. Maybe invest in higher return index funds to help in retirement, or fund six months’ worth of expenses in your “emergency bank account,” or perhaps finally have that something special you have been wanting but could not afford – Or all of these! 

#3) Your Next Home Purchase 

I agree with Laurie Goodmans’ sentiment that homeownership is a highly effective way to build wealth, so maybe you are thinking of that 2nd home up in the mountains or an investment property? The New Year is your time to reflect on your equity and then use the tools and mortgage and real estate professionals you trust most to help you with a strategy to accomplish these dreams (as my wife puts it).

If you are thinking of being pre-approved for a mortgage loan or refinancing your current mortgage please give Dan Tharp a call. It is that time again as a New Year = New Mortgage Strategy.

If you are interested in buying or selling a real property call Weintraub & Wallace Realtors- Elizabeth Weintraub & JaCi Wallace can be reached at 916-233-6759. JaCi Wallace, DRE 00773532 is with RE/MAX Gold Real Estate, in Sacramento.


Dan Tharp with Guild Mortgage

Dan Tharp NMLS# 280913


Guild Mortgage

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