Access Your Home Equity
With A Cash-Out Refinance.
…What will you do with your cash?
Home Improvement
Debt Consolidation
Higher Education
Get Away
Investment Property
Unforeseen Expenses
Cash-Out Refinance Market
As home values increase across the country it can establish an ideal market for doing a cash-out refinance on one’s home. Currently this is the scenario we are looking at, with cash-out refinance being one of the most popular types of refinance options available right now.
Benefits of a Cash-Out Refinance
- Typically allows for a larger loan amount than other cash loans due to it being secured by your home.
- The proceeds are tax-free.
- The cash loan is tied into your mortgage payment and doesn’t create a secondary monthly payment.
- The interest rate is your mortgage interest rate which is generally significantly lower than any personal loan interest rate.
Most Common Uses for a Cash-Out Refinance
Funny enough, one of the most common uses of a cash-out refinance is the homeowner reinvesting that money back into their house through home improvement projects. Using cash from your equity can be a great solution for big-ticket renovations. Not only can you avoid adding to credit card debt, but the right projects could increase the value of the home for future sale.
Some of the most popular and potentially profitable home improvements include new kitchens, adding a bathroom, deck, new roof, or certain energy-efficient upgrades.
In today’s landscape it’s easy to find yourself in a mountain of debt. Credit cards can make it so easy to accumulate debt, while their interest rates can exceed 20% APR thwarting your efforts of ever paying it off.
However, a cash-out refinance interest rate is roughly anywhere from 3-6% range. Many have found that a cash-out refinance is a powerful tool to regain financial stability.
Simply taking the money that was previously used to make monthly credit card payments and now applying that towards your principle, you can save thousands and Improve your credit score.
Education is expensive and student loans may not be the right move for you or they are, but they just don’t cover everything. Tuition itself can cost an arm and a leg and that’s not even mentioning room and board, and oh yeah lets not forget food. Whether it’s you looking to pay off your student debt or maybe you’re investing in a loved one’s future, do your homework and see if a cash-out refinance is right for you.
As the world starts to open up again many homeowners have the travel bug and are eager to get out of the house. With the increased equity in your current home, you can refinance for cash and find your escape with a brand new boat or RV. Maybe that’s not the move, but an extended vacation across the country side to rediscover yourself and recharge is more your style.
You can refinance for cash to put toward a down payment on a second home. From here your options get interesting. You can simply keep that second house as your own private escape for vacations or you can turn one of your homes into an investment property and look to have others pay your mortgage and maybe even turn a profit. Nowadays it’s easier than ever to rent out properties and collect rent, whether short-term or long-term the potential for profit is there.
Here you are going through life with everything planned out and accounted for, until that unforeseen life event rears its head. Maybe it’s your time to start that small business you’ve been thinking about and need some start-up capital. Maybe you got injured and now have an unaccounted for medical bill. Whatever it is, you’re not the first person this has happened to and definitely won’t be the last. Have no fear though, a cash-out refinance is perfect for unplanned events, especially the expensive ones.
Your loan = mission possible
If you’ve ever told yourself that you could never qualify for a mortgage loan, think again. With all the options available today, we are confident there’s a loan out there for nearly everyone. Let’s figure out which one is right for you.
