A mortgage is more than just a loan – leveraged wisely, it can be a powerful tool to shape your financial future. You may be able to use your mortgage to improve your cash flow, build wealth, and support long-term goals. Whether you’re buying your first home, planning for retirement, or managing debt, considering your mortgage as part of your overall financial plan could help you achieve stability and success.
If you want to go over your options with a mortgage expert, reach out to us – a mortgage checkup is a free, no-obligation way to learn more from a pro.
Mortgage Strategies for Cash Flow
Whether you’re looking for more spending money or wanting to save more, you may be able to make changes to your mortgage to free up funds.
- Refinancing† to a Lower Interest Rate – Lowering your interest rate may reduce monthly payments. Learn more about interest rates here.
- Changing the Loan Term† – Shorten your 30-year loan to 15 years to pay off your loan faster, or switch a 15-year loan to a 30-year loan to potentially free up cash each month.
- Debt Consolidation – Use your home’s equity to pay down high-interest credit card debt. A home equity line of credit (HELOC)^ allows you to make draws against your equity when you need, and typically carries a lower interest rate than a credit card.1
Use Home Equity for Major Life Events
Want to fund large expenses without picking up high-interest debt or disrupting your investment portfolio? Your home equity may create new financial avenues.
- Home Equity Loans†† – A home equity loan gets you a lump sum of cash that you make regular payments on like a second mortgage. Use your home’s equity to fund home renovations, pay for college tuition, or cover emergency expenses.
- HELOCs^ – Draw on a home equity line of credit to pay for home upgrades or other large expenses.
- Cash-Out Refinance† – A cash-out refinance pulls the cash directly from your existing mortgage. Access cash you can use for investments, big purchases, or anything else you may need.
- Renovation Financing – Newrez carries a variety of loan options including FHA 203(k) and Homestyle® Renovation loans.
Cash Flow from Real Estate Investment
Considering buying property to rent out? Real estate investment can sometimes be a pathway to passive income and wealth building. Newrez carries loan products tailored to real estate investors.
- Debt Service Coverage Ratio (DSCR) Loans – Qualify for a DSCR loan based on rental income from your investment property (cash flow) rather than income from an employer.
- Bank Statement Loans – Ideal for self-employed borrowers who don’t receive a W-2.
- Full Doc Loans – Helpful for people who have dealt with isolated credit events like bankruptcy or foreclosure.
Mortgage Strategies for Retirement Planning
Retirement can be an exciting time as you enter the next chapter of your life. Make sure your mortgage strategy matches up with your changing financial needs.
- Downsizing – Selling your home and moving into a smaller, more affordable property may free up equity and help to reduce your expenses.
- Paying Off Your Mortgage – Ending monthly mortgage payments might take a weight off your cash flow in retirement.
- Asset Qualifier Loans – Enables retirees with significant assets to qualify for a mortgage.
Working with a Mortgage Professional
No matter where you are in your homeownership journey, Newrez’s mortgage experts are here to help. If you’re not sure if your mortgage aligns with your long-term financial goals, now is a great time to review your options. Contact us today and we’ll guide you through personalized mortgage solutions to fit your unique needs.
References:
1 HELOCs vs. Credit Cards | Which Option is Better in 2025?
HomeStyle® is a registered trademark of the Federal National Mortgage Association and is not affiliated with Newrez LLC.
^This HELOC is an open-end line of credit where 75% of the approved full credit limit (minus the origination fees) will be drawn at the time of closing. Additional draws may be available after a 90-day period within the first 3 years not to exceed the available credit limit. Actual rates available to you may vary based on several factors including your credit score and combined loan-to-value. Loan amounts range from $50,000 to $350,000. We may determine home value and resulting equity through independent data sources and automated valuation models. Only available for eligible borrowers and property types. Not all applicants will be approved, pre-approval is based on data you have provided and certain assumptions that must be verified and subject to underwriting approval. Only available to existing Newrez serviced first lien mortgage customers on owner occupied properties. Not available in all states or territories. Contact Newrez for more information.
