Current Trends in Second Mortgage Interest Rates
Intro
The landscape of second mortgage interest rates is constantly evolving. Understanding this dynamic can facilitate educated financial decisions. This section dives into the essentials of second mortgages, providing insights into current interest rates and their implications for potential borrowers. Such knowledge can empower individuals and families to navigate their financial journeys effectively.
Overview of Financial Product
Definition of product
A second mortgage is a type of loan where the borrower uses their home as collateral, in addition to an existing mortgage. This product allows homeowners to access equity in their property without having to sell it. Usually, second mortgages are offered as either home equity loans or home equity lines of credit (HELOCs).
Importance of the product for consumers
For many, a second mortgage can provide financial relief. It enables homeowners to fund home improvements, consolidate debt, or cover unexpected expenses. By unlocking the value of their property, consumers can access funds for various needs while often benefitting from lower interest rates compared to unsecured loans. It plays a crucial role in personal finance strategies.
Types of available options
Homeowners typically have several options when considering a second mortgage:
- Home Equity Loan: This type offers a lump sum payment at a fixed interest rate. It is suitable for those who prefer predictable monthly payments.
- Home Equity Line of Credit (HELOC): A HELOC provides a revolving line of credit which can be drawn upon as needed. Interest rates are often variable, making it essential to monitor long-term costs.
- Cash-Out Refinance: This option replaces the existing mortgage with a new, larger one, allowing the borrower to receive the difference in cash. It can be beneficial if interest rates are lower than the original mortgage.
Each of these options serves different financial goals and situations, indicating the importance of assessing personal needs before making a decision.
In-Depth Comparison
Feature analysis
Each type of second mortgage comes with specific features.
- Home equity loans typically have fixed terms and interest rates.
- HELOCs offer flexibility in borrowing, often without a fixed repayment schedule.
- Cash-out refinancing can bring significant funds within a single transaction, but it extends the overall mortgage term.
Benefits vs.
drawbacks
While second mortgages can provide accessible funds, borrowers must be cautious.
Benefits include:
- Access to relatively low-interest rates.
- Home improvements can increase property value.
- Debt consolidation can simplify financial obligations.
Drawbacks may involve:
- Risk of losing the home if unable to repay.
- Potential closing costs affecting overall expenses.
- Variability in HELOC rates can lead to increased payments over time.
Cost considerations
When evaluating second mortgages, understanding the overall cost is vital. This involves determining the Annual Percentage Rate (APR), various fees, and potential rates of interest over time.
User ratings and reviews
Pay attention to user feedback on different lenders. Platforms like Reddit and financial forums can provide insights on experiences.
Best Practices for Choosing the Right Product
Key factors to consider
Selecting a second mortgage requires careful consideration of several factors:
- Personal financial status and credit score.
- Purpose for the loan.
- Interest rate and terms.
- Lender reputation and offers.
Tips for evaluating different options
It is essential to request loan estimates from various lenders. This helps to compare possible costs and features. Pay attention to the fine print.
Importance of researching providers
A thorough investigation of lenders can protect you from unfavorable terms. Look for established companies with good customer reviews and ratings.
Application Process
Step-by-step guide for applying
- Assess your financial health: Know your credit score and debts.
- Choose the type of second mortgage that suits you best.
- Gather necessary documentation, such as income proof and credit history.
- Fill out applications online or in-person with chosen lenders.
Required documentation and eligibility
Common documents required typically include:
- Proof of income (pay stubs, tax returns).
- Homeownerβs insurance policy details.
- Current mortgage statement.
Eligibility factors often involve credit score criteria and equity levels in the home.
Common pitfalls to avoid
- Not reading the fine print of loan agreements.
- Overestimating home equity value.
- Ignoring costs associated with closing.
Timeline expectations for approval
The approval process for second mortgages can vary significantly. Generally, it takes about 30 to 45 days, depending on lender efficiency and document completion.
Ongoing Management and Strategy
Tips for monitoring and managing the product
Once a second mortgage is secured, continuous management is important. Track payments and any changes in interest rates, especially for HELOCs.
Strategies for maximizing benefits
Utilize funds from second mortgages wisely. Tackle high-interest debt first or invest in meaningful home improvements for potential appreciation.
When to re-evaluate or switch products
Consider switching if better interest rates become available or your financial situation changes. Regularly assess lenders for better offers.
Resources for staying updated with market trends
Stay informed about fluctuating mortgage rates through financial news sites and mortgage lendersβ blogs. Online communities can also provide current trends and invaluable information.
βKnowledge is power when it comes to navigating second mortgages.β
Understanding Second Mortgages
Understanding second mortgages is essential for anyone considering tapping into the equity of their home. This topic explores various aspects of second mortgages, including definitions, operations, and purposes. It helps borrowers grasp the significance of these financial instruments, evaluate their options, and make informed decisions.
Definition of Second Mortgages
A second mortgage is a loan that uses the borrower's home equity as collateral, resulting in additional borrowing on top of the existing first mortgage. In straightforward terms, the mortgage is called 'second' because it holds a subordinate position to the first mortgage. In case of default, the first mortgage lender is paid before the second mortgage lender from any liquidation of assets. This risk factor is reflected in the interest rates for second mortgages, which are generally higher than those for first mortgages.
How Second Mortgages Work
Second mortgages work by allowing homeowners to borrow against the equity that they have built up in their properties. When a homeowner has made mortgage payments, the outstanding balance decreases, and the propertyβs value may increase. The difference between the current value of the home and the amount owed on the primary mortgage is the equity. Borrowers can access this equity in the form of a lump sum or a revolving line of credit, depending on whether they choose a home equity loan or a home equity line of credit (HELOC).
The process typically involves an application, credit check, and appraisal of the home to determine its current value. Once approved, the borrower receives the funds, which they can use for various purposes. Importantly, since the home secures the loan, defaulting can lead to foreclosure.
Common Uses for Second Mortgages
Borrowers have various reasons for taking out second mortgages, all largely stemming from their need for additional funding. Common uses include:
- Home Improvements: Many homeowners utilize the funds for renovations and repairs, enhancing the propertyβs value.
- Debt Consolidation: Second mortgages can offer a lower interest rate than credit cards, enabling borrowers to consolidate higher-interest debt.
- Education Expenses: Funds may be directed toward educational pursuits to finance college tuition or other educational costs.
- Medical Costs: For unexpected medical expenses, second mortgages can provide crucial financial relief.
- Investment Opportunities: Some individuals leverage their home equity to invest in real estate or other ventures for potential returns.
By understanding second mortgages, borrowers can effectively navigate their financial landscape and evaluate if this option aligns with their long-term goals.
"Second mortgages can provide valuable funds, but they come with risks needing careful consideration."
Current Trends in Second Mortgage Interest Rates
Understanding the current trends in second mortgage interest rates is essential for anyone looking to make informed financial decisions. These rates are not static; they fluctuate based on numerous factors, which include economic indicators, Federal Reserve policies, and lender competition. Recognizing these trends unveils benefits and risks associated with second mortgages, enabling potential borrowers to strategize effectively.
Overview of Current Rates
As of now, second mortgage interest rates generally hover between 6% and 9%, depending on various factors such as credit score, loan amount, and the lender's criteria. This range is slightly higher than conventional mortgages, which can be attributed to the additional risk lenders perceive when offering second loans. Since a second mortgage is subordinate to the primary mortgage, any default could result in the first mortgage taking precedence over debt recovery, thus impacting the lender's willingness to offer competitive rates.
Currently, the market is influenced by ongoing economic fluctuations. Inflation rates are sometimes pushing lenders to adjust their interest offerings. This can lead to hikes in rates as lenders anticipate changes in borrower defaults. Further, the rise in fixed-rate programs has also tapped into this environment, giving borrowers a different set of choices. Regularly consulting resources, such as Reddit discussions or financial news portals, can provide insights into the shifting landscape of these rates.
Rate Comparison with Other Mortgage Types
When compared to standard fixed-rate mortgages, second mortgage rates often present a higher financial burden. Standard fixed-rate mortgages may boast rates as low as 3% to 5%, especially for those with excellent credit. In comparison, second mortgages entail a riskier financial profile. Thus, many lenders impose slightly elevated rates to safeguard their investment.
Consider these points for better understanding:
- Home Equity Loans: Generally have a fixed interest rate, which may be higher than traditional mortgages. The consistent payment structure appeals to many borrowers.
- Home Equity Lines of Credit (HELOCs): Typically feature variable interest rates. This can initially offer lower rates compared to fixed mortgages. However, the risks can escalate when market rates increase.
By measuring these rates against conventional mortgages, potential borrowers can gauge the relative expense of taking out a second mortgage. Tools such as mortgage calculators can help individuals assess their total payment landscapes based on prevailing rates.
Understanding these rates is not only a matter of cost; it also informs one's strategy in balancing short- and long-term financial obligations.
With the right knowledge, individuals can make more nuanced decisions regarding their finances, preparing better for future interest rate changes.
Factors Influencing Second Mortgage Interest Rates
Understanding the factors that influence second mortgage interest rates is essential for borrowers. These factors play a significant role in determining the cost of borrowing. Knowing these can help potential borrowers make informed decisions. Interest rates fluctuate based on various elements, which can cause uncertainty in the market. It is crucial to consider these factors before applying for a second mortgage.
Economic Indicators
Economic indicators are vital in shaping financial landscapes. They provide insights into the economy's performance. When the economy is strong, demand for credit tends to rise, pushing interest rates higher. Conversely, in a weakening economy, demand may fall. This often leads to lower interest rates.
Key economic indicators include:
- Gross Domestic Product (GDP): A rising GDP typically shows a healthy economy, which can lead to higher interest rates.
- Unemployment Rate: High unemployment may decrease demand for loans, resulting in lower rates.
- Inflation Rates: If inflation rises, lenders may increase rates to maintain profit margins.
Understanding these indicators helps borrowers gauge possible rate fluctuations in the near future. Keeping an eye on economic trends is crucial for those looking into second mortgages.
Federal Reserve Policies
The Federal Reserve significantly impacts interest rates. Its decisions on the federal funds rate affect all types of borrowing. When the Federal Reserve raises rates, so do second mortgage lenders. This is done to keep up with market changes and inflation considerations.
Some key aspects of Federal Reserve policies include:
- Monetary Policy: Expansionary policies may lower rates, whereas contractionary policies often increase them.
- Interest Rate Predictions: Expectations of future Fed actions can influence current rates.
Borrowers should closely monitor Federal Reserve announcements. Any shifts can provide an indication of where second mortgage rates might head next.
Lender Competition
The competitive landscape among lenders also affects interest rates. When many lenders vie for business, they may offer lower rates to attract borrowers. Conversely, when fewer lenders are available, rates can increase.
Factors in lender competition include:
- Market Size: A larger pool of lenders generally keeps rates lower.
- Consumer Demand: If many consumers seek second mortgages, lenders may raise rates due to increased demand.
Assessing lender competition can be crucial for borrowers seeking favorable rates. A thorough comparison can lead to more advantageous borrowing terms.
Ultimately, borrowers must educate themselves about these influential factors. Doing so enables them to navigate the complexities of second mortgage interest rates effectively. Understanding economic indicators, Federal Reserve policies, and lender competition can greatly aid in the decision-making process.
Types of Second Mortgages
Understanding the types of second mortgages is crucial for potential borrowers. Each type comes with its specific features, benefits, and considerations. This knowledge allows individuals to make informed financial decisions based on their personal circumstances and goals.
Home Equity Loans
Home equity loans are a popular choice for those who need a lump sum of money upfront. This type of loan allows homeowners to borrow against the equity they have built up in their properties. Equity is simply the difference between the market value of the home and the remaining balance on the mortgage.
Key features of home equity loans include:
- Fixed Interest Rates: Borrowers often prefer fixed rates as they provide predictable payment amounts over time.
- Lump Sum Payment: This loan type provides a one-time payment, making it suitable for substantial expenses such as home renovations or debt consolidation.
- Repayment Term: Typically, repayment terms for home equity loans range from five to thirty years, allowing for manageable long-term planning.
However, there are also considerations to keep in mind. If the borrower fails to make payments, there is a risk of foreclosure. Additionally, the loan amount is generally limited to a certain percentage of the home's appraised value. Interest on these loans may also not be deductible, depending on how the funds are used.
Home Equity Lines of Credit (HELOCs)
On the other hand, Home Equity Lines of Credit (HELOCs) offer a more flexible borrowing option. Similar to home equity loans, HELOCs allow homeowners to borrow against their equity, but they function more like a credit card.
Important aspects of HELOCs are:
- Revolving Credit: Borrowers can withdraw funds as needed up to a certain limit, which can be very advantageous for ongoing expenses or projects.
- Variable Interest Rates: Many HELOCs come with variable interest rates, which can fluctuate over time. This can lead to lower initial payments but uncertain future costs.
- Draw Period and Repayment Period: HELOCs typically have a draw period, often ten years, during which the borrower can take out funds. After that, the repayment period begins, which can last for up to twenty years.
Despite the benefits, potential risks should also be evaluated. The elasticity of payment amounts during the draw period can result in increased financial pressure when transitioning to repayment. Like home equity loans, if payments are not made, there is a risk of losing the home.
Homeowners must assess their financial situation before choosing between a home equity loan and a HELOC. Each option has distinct advantages and considerations that can impact their financial health.
By fully understanding these types of second mortgages, borrowers can choose the right financing tools that fit their needs, providing them with greater control over their financial journeys.
Calculating Second Mortgage Costs
Understanding the financial implications of a second mortgage is crucial for any potential borrower. Calculating second mortgage costs provides insights into what one can expect in terms of payments and overall expenses. This understanding becomes particularly important as interest rates fluctuate and the housing market evolves. Each element of these costs can impact a borrowerβs financial planning and long-term goals.
Principal and Interest Payments
When taking on a second mortgage, principal and interest payments are often the most significant recurring costs. The principal is the original sum borrowed, and the interest is what lenders charge for the service of extending credit.
Ultimately, how these components are structured affects monthly affordability. For example, a higher principal may seem appealing due to lower initial costs but can result in significant payments over time. Borrowers should consider how various interest rates will influence these payments. Generally, a lower interest rate correlates with lower overall costs. One efficient way to assess this is by using a mortgage calculator to see potential monthly payments based on different rates and loan amounts.
Closing Costs and Fees
Closing costs and fees can quickly add up, potentially reaching thousands of dollars. These costs are not typically included in the principal and interest calculations. Instead, they cover various expenses required to finalize a loan, such as appraisal fees, title insurance, and origination fees.
It's essential to ask lenders for a detailed estimate of these costs before signing any agreement. Some loans might come with lower closing costs but higher interest rates, creating a situation where borrowers pay more over time. Potential borrowers should always compare these fees between different lenders to ensure they fully understand their financial commitments before proceeding.
Impact of Interest Rates on Total Costs
Interest rates significantly impact the total costs of a second mortgage. Fluctuations in rates can directly affect both the monthly payment and the total amount paid over the life of the loan. For instance, a small difference in the interest rate can result in substantial savings or expenses across the course of the mortgage.
Consider this example: A second mortgage of $50,000 at an interest rate of 5% for 15 years results in a total payment of about $65,002. In contrast, if the rate were just one percentage point higher, 6%, the total would increase to roughly $68,290. Over time, these differences add up and can significantly influence financial stability. Consequently, evaluating the interest rates available at the time of applying is crucial for borrowers looking to minimize long-term costs.
Understanding costs should not only revolve around the monthly payments. A thorough analysis includes closing costs, ongoing fees, and interest rate impacts.
Overall, calculating second mortgage costs is a multifaceted task that requires careful analysis and planning. Borrowers who take the time to understand these elements are often better positioned to make informed financial decisions.
Applying for a Second Mortgage
Applying for a second mortgage is a significant step for any homeowner. This process can provide access to additional funds, but it also carries financial responsibilities that must be carefully considered. Understanding the application process can empower potential borrowers to navigate the options available to them more effectively. It is important to fully grasp the implications, benefits, and strategies associated with this financial decision.
Pre-Qualification Process
The pre-qualification process serves as the first step in obtaining a second mortgage. During this stage, borrowers provide basic financial information to lenders. This typically includes income, credit score, and existing debts. Lenders then offer an estimate of how much the borrower may be able to borrow. This informal assessment does not guarantee approval but creates a clearer perspective on potential loan amounts and interest rates.
Benefits of pre-qualification include:
- Understanding financial limits: Knowing how much one can borrow is crucial for effective budgeting.
- Identifying loan options: Borrowers can explore various mortgage products suitable for their needs.
- Preparation for formal application: It allows for an efficient transition to the full application process.
Key Documentation Required
Gathering the required documentation is vital for a smooth application experience. Lenders typically request several key documents to assess an applicant's financial health. Some of the documents often needed are:
- Proof of income: Recent pay stubs and tax returns are common requests.
- Credit report: Lenders may pull this independently, but having personal knowledge can prepare borrowers.
- Loan information: Details about existing mortgages or debts are required for a complete analysis.
- Personal identification: A government-issued ID and social security number confirm identity.
Providing accurate and complete information can expedite the approval process and build trust with potential lenders.
Evaluating Lenders
Choosing the right lender is crucial in the second mortgage application process. Not all lenders offer the same products, terms, or customer service. Evaluating potential lenders involves looking at several key factors:
- Interest Rates: Compare rates among lenders to secure the best deal.
- Fees: Check for any hidden costs, such as application or appraisal fees.
- Reputation: Research the lender's reputation through reviews and consumer feedback to ensure reliability.
- Customer service: Responsive and helpful service can ease the mortgage process.
Taking the time to research and compare lender options can lead to financial benefits and a better borrowing experience.
Always read the fine print and understand what each lender offers. This knowledge can prevent unexpected costs down the line.
Understanding these essential steps can aid borrowers in navigating the second mortgage landscape more effectively, ensuring they make informed choices rooted in their financial realities.
Managing Second Mortgage Payments
Managing second mortgage payments is an essential aspect of maintaining financial stability and ensuring long-term success as a borrower. When taking out a second mortgage, understanding how to effectively manage the repayment process can prevent potential pitfalls, such as default and foreclosure. A solid plan not only ensures that payments are made on time but also helps to balance your overall budget, making it vital for anyone considering this financial option.
Budgeting for Payments
Budgeting for payments involves several important considerations. The first step is to assess your current financial situation. Take a close look at your income, monthly expenses, and other financial obligations. Here are some elements to consider when budgeting for your second mortgage payments:
- Total monthly payment: Include both the principal and interest in your calculations.
- Property taxes: Second mortgages often do not include property taxes in the payment, so plan for this additional cost.
- Homeowner's insurance: Ensure you budget for insurance as part of your housing costs.
- Maintenance costs: Unexpected repairs can arise, so have a reserve fund.
By using this comprehensive approach, you can create a realistic budget that accommodates your second mortgage payments and leaves room for other expenses. It is beneficial to revisit this budget regularly to adjust for any changes in income or expenses. Establishing a clear budgeting strategy can also lead to more informed spending decisions in other areas of your financial life.
Refinancing Options
Refinancing a second mortgage may be an appealing option for many borrowers seeking to reduce their monthly payments or secure a lower interest rate. Understanding the benefits and possible scenarios for refinancing can make a significant difference in overall financial health. Some key points to keep in mind include:
- Lower Interest Rates: Market fluctuations sometimes allow homeowners to refinance at a lower rate than their existing mortgage, reducing overall costs.
- Changing Loan Terms: Refinancing may provide the opportunity to extend the loan term, thereby lowering monthly payments, although this can increase total interest paid over time.
- Debt Consolidation: If you have other high-interest debts, refinancing your second mortgage could provide cash to consolidate them into one lower payment.
However, it is essential to approach refinancing with caution. Consider the closing costs associated with refinancing, as these can offset the benefits. Always compare the current interest rates with your existing rate and evaluate the long-term effects on your financial situation. Ultimately, refinancing should align with your financial goals, enhancing your overall loan management.
The effective management of second mortgage payments can safeguard against potential financial distress and create avenues for more robust personal finance stability.
Potential Risks of Second Mortgages
Second mortgages can be valuable financial tools. However, they carry risks that are crucial for potential borrowers to understand. This section focuses on two significant risks: the risk of foreclosure and the impact on credit scores. By realizing these risks, borrowers can make informed decisions when considering a second mortgage.
Risk of Foreclosure
One of the most significant risks associated with second mortgages is the danger of foreclosure. If borrowers fail to make their payments, lenders can initiate foreclosure proceedings. This situation occurs because a second mortgage is secured by the home, just like a first mortgage. Thus, if the homeowner misses payments, the lender has the legal right to seize the property.
Key aspects to consider regarding foreclosure risk include:
- Higher Monthly Payments: Second mortgages often add to existing monthly obligations. If homeowners struggle with these payments, they risk default.
- Variable Interest Rates: Some second mortgages have variable rates that may increase over time, impacting monthly budgets.
- Equity Challenges: If the home value decreases, homeowners may find themselves owing more than the house is worth, which complicates selling or refinancing.
"Being aware of how a second mortgage works is essential. Understanding the potential consequences can prevent serious financial challenges in the future."
Impact on Credit Score
Another risk relates to the potential impact second mortgages can have on a borrower's credit score. Initial borrowing may not hurt a credit score significantly. However, missed payments or default can lead to a decline.
Important points regarding credit scores include:
- Debt-to-Income Ratio: Adding a second mortgage increases overall debt, which may negatively affect credit evaluations. A higher ratio can lead to reduced creditworthiness.
- Late Payments: If payments are late, credit scores can drop rapidly. This makes it essential to stay organized and pay on time.
- Credit Inquiry Effects: When applying for a second mortgage, lenders conduct credit inquiries. While a single inquiry has a minimal effect, multiple inquiries can negatively impact the score.
Future Projections for Second Mortgage Rates
Understanding the future of second mortgage rates is crucial for potential borrowers and investors alike. As interest rates influence overall borrowing costs, predictions about their fluctuations can significantly impact financial planning. Borrowers need to be aware of the factors that will affect rates moving forward. These include economic indicators, government policies, and lender behavior. By anticipating these changes, individuals can position themselves better in the lending market.
Market Predictions
Market predictions for second mortgage rates require analyzing trends that have developed in recent months. Economists and financial analysts usually study data from various sources to make informed projections. Current trends suggest a possibility of gradual increase in interest rates, primarily due to rising inflation and economic recovery.
- Inflation Pressure: As inflation rises, central banks may respond by increasing interest rates. Higher inflation reduces purchasing power, prompting the need for tighter monetary policies.
- Economic Growth: With consumer spending and employment improving, demand for loans can also lead to higher interest rates as lenders capitalize on strengthened economic conditions.
- Global Events: International occurrences, like conflicts or changes in trade policies, can also have a ripple effect on U.S. rates. An unstable global economy often leads to uncertainty in financial markets.
These factors indicate that potential borrowers may see higher second mortgage rates within the next few years. Monitoring market conditions can help ensure timely decisions when applying for loans.
Long-Term Implications for Borrowers
The long-term implications of rising second mortgage rates are substantial for borrowers. A higher rate means increased costs over the life of the loan. Consequently, it is essential to consider the following factors:
- Affordability: With escalating interest rates, monthly payments will likely increase, affecting the affordability of loans. Borrowers should assess their financial capability accordingly.
- Appreciation of Property: Even if rates rise, property values may still appreciate. If one secures a second mortgage at a lower rate now, it could benefit them in the long run as property values climb.
- Refinancing Considerations: Rising rates might deter some from refinancing their existing loans, making current interest rates a strategic focus for potential borrowers.
- Credit Score Impact: Maintaining a good credit score remains essential, especially if rates increase. A solid credit rating can lead to more favorable lending terms.
Borrowers should analyze their financial situation thoroughly and seek guidance if uncertain about pursuing a second mortgage during fluctuating interest rates.
Ending
The conclusion serves as an essential component of this article, providing a concise recap of the insights discussed about second mortgage interest rates. Understanding these points is crucial for potential borrowers, as they evaluate their options in today's complex financial environment.
Summary of Key Points
The dynamics of second mortgage interest rates are influenced by various factors, including economic indicators, federal reserve policies, and lender competition. Key insights include:
- Current Rates: Todayβs rates fluctuate based on market conditions and may vary significantly among lenders.
- Cost Factors: Borrowers must account for principal, interest, closing costs, and their overall financial health.
- Types of Second Mortgages: Home equity loans and home equity lines of credit (HELOCs) offer different benefits and drawbacks.
- Risk Considerations: Potential risks, such as foreclosure and impacts on credit scores, warrant careful consideration.
"Second mortgages can be a beneficial financial tool, but they require thorough understanding and due diligence."
Final Thoughts for Prospective Borrowers
For prospective borrowers, it is imperative to undertake a methodical approach when considering a second mortgage. Analyze your financial situation critically, compare various lenders, and remain aware of all associated costs.
Engage with financial advisors if needed, as they can provide tailored guidance based on individual circumstances. Being informed about interest trends can help in making strategic decisions that align with your financial goals.