Refinancing your home can have many benefits, but the main one that typically entices borrowers is the potential to save money on monthly payments. For some, a refinance could result in a decreased interest rate and subsequent savings on their monthly payment. If you’re fortunate enough to have that result, don’t spend that extra money just yet! Consider one of these options to make the most of your refinance savings.
- Pay off debt with high interest rates
Do you have have any loans or pesky credit cards with high interest rates? Consider paying those off first. Doing so can free up funds for you to invest in other ways.
- Build your emergency savings
Having money set aside just in case is always a smart idea. Should a financial emergency occur, having a savings account ready for use in this situation could be a lifesaver. If your emergency savings fund is lacking, or if you don’t have one at all, you may want to set aside the money you’ve saved through refinancing.
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