Need a financial Boost? A Cash-Out Refinance Might be a Great Option

When in search for additional financial means, unlocking the equity in your home can provide an excellent source of funds. There are various reasons why someone might want to take advantage of their home’s equity, such as, home improvements, debt consolidation or college expenses.

Given today’s low interest rates, a cash-out refinance may be a great option. A cash-out refinance is a way to both refinance your mortgage and borrow money at the same time. This loan option allows buyers to replace an active home’s mortgage with a new mortgage that has a value higher than the outstanding mortgage balance. The eligible funds will be a result of the difference between the former mortgage and your new one.

A few of our clients share their experiences with a cash-out refinance:

Client 1—Dreaded Medical Bills—Client 1 was struggling to pay off a high interest medical bills. Decided to apply for a cash-out re-fi and improved cash flow by $1002 per month.?

Client 2—Dream Kitchen—Client 2 used a cash-out refi to upgrade their kitchen and was even able to lower their monthly mortgage payment by $34 a month.

?It is important to note, for a cash-out refi to be most beneficial make sure you are reducing your interest rate and putting your funds towards good use. Your credit score and the type of mortgage you have will be a factor into the amount you can receive, with most lenders allowing homeowners to borrow up to 80 percent of their home’s value.?

Not sure what your current home’s approximate value is? We provide a free monitoring tool called Homebot. Homebot is like an interactive bank statement for your home, which gives you direct access to see your home’s net worth and interactive options on what you can do with that worth.

While the process of a cash-out refinance is fairly simple, we understand that not every loan is the same. Our team is calm and resourceful, but most importantly, dedicated to help you every step of the way.

If you are interested in learning more about your cash-out refinance options or have any mortgage questions in general feel free to set up a time to chat HERE. We are here for you and always happy to help!?