Home Refinancing And The Mortgage Moms

In many households, financial decision-making is closely tied to the
nation's economy, which, in turn, fuels a majority of our social and
political issues. Industry analysts recently identified an important
demographic whose voting clout could be crucial to upcoming political
campaigns, the so-called "mortgage moms." When it comes to major purchases
or home refinancing decisions in today's economy, the female
head-of-household (or
co-head) plays a key role and should not be taken for granted.

According to a recent article in the Washington Post, "Flat wages and rising
debt nationally have converged to leave millions of middle-class households
feeling acutely vulnerable to bumps in their financial planning. The most
visible of these are rising energy prices and a softening housing market. A
less obvious but powerful variable is the interest paid by people carrying
credit card debt or mortgages whose monthly payments vary with interest
rates."

Mortgage moms are committed to finding financial solutions that address
their current challenges without ransoming the family's future. A common
solution is home refinancing, which enables them to consolidate personal
debt, access cash from their home's equity, and trade their adjustable-rate
mortgage (ARM) for the stability of a low fixed rate.

With more home loan options widely available, homeowners are using
traditional home refinancing for a variety of purposes, including avoiding
the interest rate hikes associated with an ARM. While their monthly mortgage
payments may increase slightly, they will enjoy affordable fixed payments
for the duration of the loan. Even swapping an ARM for another adjustable
rate mortgage can provide substantial savings, provided the new loan has
more attractive lifetime caps on the interest rate.

Home refinancing can also be used to obtain cash from the home's equity that
can be used for just about any financial need. Many homeowners use the cash
to pay off higher interest credit card debt, potentially saving themselves
thousands of dollars in interest each year. Of course, this radical approach
to debt consolidation only works if the family sticks to its budgeting guns
and does not return to its old spending habits.

With so much riding on their decisions, mortgage moms can benefit most if
they spend time researching and comparing their loan options, prior to
making a decision. Home refinancing is just one potential solution, but it
is certainly not the only route to stabilizing "the nest egg" in a
fluctuating economy.
As politicians gear up for the next round of campaigning, it seems likely
that they will listen carefully to the mortgage moms and their concerns, as
they play a key role in determining so many financial decisions in
middle-class homes.

About The Author: Need lower monthly payments? Extra cash? A fixed mortgage
rate? Refinancing is an easy and convenient.
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