Refinancing mortgages is a popular trend among homeowners to reduce their monthly payments through locked-in low rates. Mortgage rates are currently at historic lows, and this allows for monthly cash savings for many households.
The key is not to waste away this extra cash on needless expenditures, and use it better purposes. Here are 10 fun things to spend the extra money you save from refinancing your mortgage.
1. Save for a Vacation
There is nothing better than hitting the sunny shorelines during Christmas. You could start planning a vacation during the holidays right away. Monthly savings add up over time which can be spent on the destination of your choice.
You could surprise your loved ones with an impromptu and inexpensive vacation as well. There are always a number of wonderful spots within driving distance, which you probably never had a chance to explore before. Vacation is a salient way to pamper and rejuvenate yourself and your family.
2. Home Repairs or Improvements
A competitive marketplace has ensured that most home improvement contractors are willing to offer affordable rates. You could get an excellent deal to finally get that patio completed or the swimming pool fitted. You could also spend the extra cash on repairing the fixtures, fittings, and furniture around your home.
Paint jobs are a good way to spruce up the living room and kitchen. You could spend some extra cash on fitting in new cabinets. There is no limit to the work you can get done. You can even integrate your home with smart home technology or simply change the décor to match with the new trends.
You would not refinance a mortgage if you are not planning on staying long in your current home. Hence, there is no harm in adding improvements. These would also bump up the value of your home at the time of re-sale.
3. Buy Big Ticket Items
There is always something like that big TV or the latest sedan that you wanted to buy but never could due to a cash crunch. Well, this is the right time to invest in your heart’s desires. You can save your monthly savings from mortgage refinance to buy the items you always desperately wanted.
You could buy something other than big ticket items as well like the latest Pixel 3 XL or PS 4. If you are not a gaming fan, you could invest in some other electronic appliance or gadget that you require. There are many interesting choices in the market for you to explore.
4. Treat Yourself
There is no better way to spend money other than on you. You can shower yourself with gifts, clothes, perfumes and even a great dining experience. You could also hit the spa or get a gym membership. The idea is to splurge your extra cash away.
5. Pamper Your Partner
Likewise, you could also pamper your partner. A sterling way of spending the extra money while building on your relationship is to find things you both are interested in and enjoy thoroughly. You could take up dance lessons, join Equine therapy, or simply check yourself in for a Shiatsu massage.
6. Invest in Cryptocurrency
This might not sound like a fun thing to do on the face of it. However, if you have a decent understanding of crypto investing, you could multiply your money over a short period of time. Many tech-friendly people shy away from investing in Bitcoins and other cryptocurrencies because they do not have extra cash lying around.
You could make the most of this opportunity and invest where it really matters. Who knows? You might just come out a winner from your investment. The best part about cryptocurrency is that it does not require you to work.
All you need to do is sit back and let the crypto market do its thing. Make sure to put a stop loss and exit if the prices go lower than a certain limit.
7. Jazz up your Ride
If you ever wanted to put in a 32-inch subwoofer in your car and never really knew where to get the money from, then this is your big chance. You can do other things with your car as well. Get a complete makeover or have it morphed into something out of the latest Fast & Furious, Transformers, or Star Trek flick (don’t waste time though with any more Star Wars, 22 Jumpstreet, or Iron Man movies though!).
There is something for you even if you are a soccer mom. You could buy those baby seats that afford extra protection to your little ones while travelling.
8. Buy Tickets
You can splurge on tickets to watch your favorite sporting event or the latest show on the theatre. There is nothing that comes close to beating front row seats. You could watch your favorite team within touching distance. You could buy concert tickets for your favorite band. You could also do something completely new and make it an experience.
9. Go on a Date
Remember how you wanted to try out that high end restaurant which recently opened up? Well, what’s stopping you now? Book a table and take out your date for a golden experience. Money is not the constraint here as most mortgage refinancing options allow you to save some money.
10. Give to Charity
Many people swear by the fun of signing up with a charity. You could become part of the elite few who have a charity cause up their sleeves.
You could even brag to your peers about it. Jokes apart, giving for a cause you believe in will make you feel happy on the inside. It is also a poignant way for you to get physically involved with what you believe in. This could lead to other opportunities as you meet more like-minded people.
There are hundreds of ways you can spend the money saved from refinancing. If you haven’t already refinanced your mortgage, there is not any point in waiting any longer.
The opportunities are tremendous because of the prevailing low interest rate environment, and the savings can be substantial. You will get to lower your monthly payments while decreasing the loan-to-equity ratio. You can also save by not having to pay private mortgage insurance.
There are also some serious things you can do with your savings such as paying off other loans or credit card bills. You could also invest in a payment plan that will eliminate the burden of having to pay the mortgage payments later on. Not a bad deal!