Property owners may wish to consider refinancing their mortgage to create a “buffer” of emergency cash once their investment has started to grow in value, one expert has suggested.
Chris Gray, author of The Effortless Empire – Building Wealth from Property, advised Your Mortgage readers that once they start to see value in their investment, mortgage refinance is an option well worth considering.
He emphasised that this type of cash buffer will ensure that even in the event of an emergency – losing your job, for example – you will still be able to keep up with your mortgage repayments.
“You don’t want to find yourself in a forced-sale position, as you won’t get the best price and it may trigger capital gains taxes and other expenses,” Mr Grey advised.
Anyone with a home loan can benefit from carrying out a regular mortgage check-up.
While many people get their car checked regularly or have their home inspected, they are often less likely to have their home loan re-evaluated.
The purpose of an evaluation is twofold – it can help to ensure you have a product that suits your specific needs and may also save you money if there are better mortgages now on the market.