Cash-Out Refinancing is a great way for homeowners to replace your existing mortgage and combine with other debts. It creates one loan with one convenient monthly payment (instead of multiple payments). You may be able to structure the loan to receive cash to be used as you find fit.
Cash-out refinancing, in certain situations, may have other financial benefits:
• Potentially lower interest rates than other types of loans
• Ability to consolidate debt into one convenient monthly payment
• May improve your credit score buy paying down high balances
• Interest may be tax deductible*
These are just some of the great ways you can use the money from your cash-out refinance:
• Complete home renovations
• Pay for higher education
• Pay off credit card debt
• Add to or protect your existing investment
• Purchase a second home/property
• Utilize cash for business purposes
Here are some things to think about before refinancing:
• What new mortgage term would work best for me?
• Are interest rates lower than my current financing?
• How much cash is available in a new mortgage?
• What would my new monthly payment be?
• How would my taxes be affected?*
• What would closing costs be on the new mortgage?
We can help you answer these questions and determine whether a cash-out refinance may help you with your long-term financial goals, contact your Licensed Loan Originator today!
*Consult a qualified tax professional for your specific situation.