Jake's Lending Tip of the Week

American homeowners have a TON of equity in their homes…more than $30 trillion according to Federal Reserve. This number has gone up dramatically over the past few years as home prices have skyrocketed. Many people are looking at ways to access this equity for a myriad of reasons. One way to access this equity is through a cash-out refinance. Below are some of the reasons to look at your options utilizing a cash-out refinance:

Consolidate Debt?- Interest rates on a mortgage are substantially lower than other types of financing such as credit cards and personal loans. Utilizing a cash-out refinance to consolidate debt can improve monthly cash flow, and cost less in interest.

Home Renovations?– Updating a home can be a costly endeavor. The equity in your home can be used to pay for these renovations. In many cases updating a home will improve the value of the home, which increases what you can sell it for in the future.

Covering Unexpected Expenses?– Life happens, and unfortunately, we do not always have the cash on hand to pay for it. The equity in your home can be great a tool to pay for costly repairs such as new roof or AC unit.

If a cash-out refinance seems like it may work for you, reach out, and we can determine if it makes financial sense.?