002 Unlock the value of your house

Unlock the value of your house

A fellow planner shared his this experience with me. He has a client who is worried about the financial position of his family. He has to service a home loan and a car loan. He wants to prepare his children education fund, which may be needed in a few years time. By looking in his cash flow, he can't save enough in time for that purpose. He seeks advice from the planner.

The planner studied his case, and found his house has appreciated in value. The client can consider to refinance his house to unlock the value of the house. In his proposal, planner suggested client to

• refinance the house to get additional sum of money,
• choose a fixed rate home loan,
• consolidate his home loan and car loan into one,
• properly relocate the extra cash from refinancing for investment, emergency fund, and education fund.

 The client was very delighted to look at the proposal. He has duly executed the plan. Now,  he feel more secured financially, having knowing his family's needs has been taken cared of. By consolidating both loans, his monthly payment remains almost the same. He does not have to worry about interest rate hike. He can start a regular saving plan for his retirement fund, perhaps.

How many families are facing the same problems? Things are getting more and more expensive. How are we going to meet daily expenses and our short- and long-term financial goals. Does the present property value hike offer us a chance to cash out the value?

If the plan meets client's need, doesn't it already meet its purpose? The planner also find satisfaction to be of help.