One way to generate income is to refinance your home. A person can refinance their primary residence to invest in rental property. Now that interest rates are low and real estate is appreciating rapidly, this is one way to increase your income for an elevated lifestyle now, or for added income in your retirement years.

Eric Punt, Senior Loan Officer at Viking Mortgage Services in Port Orchard, says interest rates are as low as they’ve been in 46 years. He suggests a person begin by getting good-faith estimates from more than one mortgage broker. In an aside, Punt explains that banks offer their own product, but that brokers have more than one lender. His company deals with 90 different lenders.

Never share personal information over the phone. Meet with your potential broker face-to-face. Look for clues in their office of a state license, membership in the Chamber of Commerce, Better Business Bureau, and other documents that will give you confidence you’re dealing with someone reputable, Punt advises.

Be leery of a broker who will not give you a copy of the good faith estimate. Build a relationship with a broker who is well informed. Find out if the loan officer will be present at closing, in order to explain any last-minute changes. The borrower should have full understanding.

Punt says refinancing your home for debt consolidation, paying off credit cards, is turning short-term debt into long-term debt, and he wouldn’t do it. Instead, take out an equity line of credit.

To refinance, one will have to document income, likely have the home appraised, which may lead to other inspections. The borrower’s history, including divorce, bankruptcy, tax payments, any court judgment, may all come into play in the refinance.

Punt, who has been in the business 13 years, says, “I love my job. I meet a lot of people. No two are ever the same.” While trying to make the process easier by lightening the mood, he’s ended up making new friends of some clients.

Carolyn Frame, owner of CFA Northwest Mortgage Professionals on Bainbridge, has embraced an idea espoused by Alan Greenspan, that although 15-year and 30-year fixed rate loans were once considered best, now adjustable rate mortgages can be more advantageous.

If you will only live in your home 5 years, which is common, then on a 30-year fixed loan, you will barely touch the principal in your payments. A competing plan is to get a 5-year interest only loan, counting on appreciation to make money for you.

The American Dream used to be paying off your home. Now, says Frame, that is like stuffing money in your mattress. Your home can be an asset or a liability. It all starts with an overall plan, and she enjoys brainstorming with clients on how to get the most from what they already have, rather than relying solely on the “rat race.”

Frame treats her ever-increasing knowledge as a trust, and believes it is imperative to coach and educate as a part of her job. She is big on Robert Kiyosaki, author of the best seller Rich Dad, Poor Dad, and her office has the Cashflow board game based on his philosophies. The educational game teaches financial literacy in accounting, finance and investing, all in a fun way.

Dan Means, owner of Lighthouse Mortgage in Bremerton, says with the US Navy plans for another ship to arrive, more rental housing is a critical thing in Kitsap’s near future. If NASCAR comes to town, even more housing will be in demand, all driving up prices.

And that is the motivation for many to refinance and invest in rental property. A good property management company can take care of the day-to-day work, and the owner may want to sell in 5 years, realizing a nice profit and starting again.

Means says with computers and the Internet that many steps for getting your loan have been shortened. “Half the time we don’t need the documentation we used to,” he says. Proof of income is still required, however.

Means warns against FHA loans (great for getting into a home, but not for the long term). FHA, according to Means, requires mortgage insurance for 10 years, and it is one expense that can be saved by refinancing.

According to Means, in the Kitsap area, in three years, a home can appreciate some 20 percent.