5 Refinancing Tips: Save Money In Mexico!
At MoXi, we believe that U.S. citizens who own property in Mexico should not feel stuck with an illiquid asset they have to hold forever. We’re proud to offer refinance options for those who didn't have the option of reasonable financing when they first bought their home in Mexico, those seeking liquidity, and those that are looking to lock-in long-term fixed rate equal payment leverage.
Refinancing is a great way to use the equity in your Mexican home, which has likely increased since you first purchased it, and take advantage of current interest rates—saving you money each month and potentially leading to a more comfortable retirement. Plus, refinancing can be used to pay off existing debts, renovate your home or make other investments like starting a business or buying another property.
Here are some tips if you're considering refinancing your property in Mexico
1) Check Your Credit Score: Make sure your credit report looks accurate before applying for a refinance loan; this will help lenders like MoXi determine the interest rate you qualify for.
2) Get Your Tax Returns In Order: Make sure your personal U.S. federal tax returns from the past two years are up-to-date and in order; MoXi will need them as part of our due diligence process.
3) Know Your Options: MoXi's loan offerings feature fully amortized payments, with interest rates that are fixed for the duration of the loan. Clients can choose from a variety of term lengths—15, 20, or 25 years—while the rate remains constant regardless of their selection. The payment amount is calculated based on the chosen term length, allowing Principal and Interest to be paid back in equal installments over the loan term. Many MoXi customers opt for 25-year terms to gain added flexibility when making payments; MoXi does not impose any penalties when clients choose to pay extra towards their principal or pay the loan off early.
4) Consider Other Fees: Remember to factor in closing costs, fees associated with transferring title ownership, and other fees that may be required by the lender into your overall budget when planning for refinancing costs. In many cases, clients can include a majority of closing costs in their refinance loan with little out-of-pocket cost.
5) Get Professional Advice: Speak with a financial advisor, CPA, or real estate attorney to help guide you in determining whether or not refinancing may be right for you. Remember to ask about the potential tax-deductibility of mortgage interest on your refinance loan - yes, you may be able to deduct mortgage interest paid to MoXi on your U.S. Federal or State income tax return.
Refinancing your home in Mexico is a great way to take advantage of current low-interest rates in order to save money and create additional financial security and/or liquidity.
With MoXi, you can enjoy the benefits of fully amortized payments with interest rates that are fixed for the life of the loan and customizable term lengths.
To get started on your refinance journey, contact us directly and receive personalized advice on navigating the process successfully.
Whatever your financial goals, MoXi has the experience and knowledge to help you make informed decisions and be on your way to achieving them. Let's talk!