Discover if You Qualify for a Cash-Out Refinance

Turn your home’s equity into cash!

 

 The Benefits of a Cash-Out Refinance

Make Your Home’s Equity Work for You.

 
 
 

Utilize Gained Equity

When your home’s value increases, you may qualify for a Cash-out refinance to make use of that money, which can be reinvested in the value of the home.

Get Cash for Investing

When choosing a cash-out refinance, it means having extra money for home projects, investments, school and beyond. The possibilities are limitless when you capitalize on the equity your home has earned.

Look For Better Loan Terms

If the initial terms of your financing were less than ideal, a cash-out Refinance could possibly have better options and a lower monthly payment.

 
 
 

 What You Need to Know About Cash-Out Refinancing

​Cash-Out Refinancing is more common than you think. According to statistics from MBA.org, Cash Out Refinance loans were among the most popular refinancing loans in the country, with 63% of such loans comprising all refinancing in the fourth quarter of 2017.

This method of refinancing has recovered.  After the home mortgage crisis over a decade ago, confidence has been restored and home equity is moving up, making it a good time to secure low interest rates and excess cash.

Like any other refinance loan, cash-out refinance loans help you take advantage of interest rates. Worried that interest rates might climb in the next five years? Ten years? Taking advantage of current interest rates with a cash-out refinance can help you use extra cash while interest rates remain low.

There’s still room for home equity growth. According to some statistics, the historical rate of cash-out refinancing and home equities suggests that the trend is moving upward, which means there’s still plenty of opportunity for utilizing extra cash with a cash-out refinance.

Put your money to use. Cash-out refinancing means you can turn money that was sitting in your home’s equity into liquid cash that you can then put to use in the way you see fit, such as paying off debt elsewhere, going on a vacation, saving for college tuition — just about anything!

 
 

Cash-Out Refinance FAQs

 

  • This is a straightforward home refinancing loan. However, it includes unique circumstances. If you only owe $200,000 on a home that has appreciated to a value of $300,000, for example, you may qualify for refinancing that allows you to receive a loan over the amount of equity you hold, giving you an excess of cash.

  • The terms are remarkably similar to many mortgages. What’s different is whether your home qualifies—it helps when you have built equity in your home, especially when you’ve purchased a home that’s appreciated in value over time. Like many refinance loans, you will have a new monthly payment to satisfy the terms of the new loan.

  • That’s up to you. Many people choose to reinvest this money into the value of their home by using the money for renovations. Other people pay down other debts they have, which in turn makes their monthly mortgage payment far more manageable. What’s important is to use this cash in a way that’s responsible for your given financial situation.

  • This depends on factors such as the previous and current value of your home, but many people can expect to borrow as much as 80% of the home’s current value. However, this is different for every individual, so make sure that you do your research before you set clear expectations for the money you’ll receive.