There’s never been a better time to consider a cash out refinance!
A cash out loan is when a home owner refinances a home for more than you currently owe and takes the extra cash. Of course there’s a limit on how much extra cash can be pocketed. The allowed amount is based on a certain percentage of the homes current value. Each scenario has a different allowed amount
For Example:
There is $100,000 left to pay on your current loan on your home with a current market value of $250,000. You would like to get additional money by refinancing your current mortgage in order to make improvements to your home, pay for your kids college expense at Pepperdine or any other purpose the extra cash will serve . You can refinance your home and get an extra $25,000. Of course you may be able to get more than $25,000 cash-out depending on the program and current market rate. Keep in mind cash-out mortgage refinances always carry a slightly higher rate than a rate/term refinance.
The difference between refinancing and applying for a Home Equity Line of Credit (HELOC)
Cash-Out Refinance | HELOC |
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Is a cash out refinance right for you?
Deciding on getting cash from your home depends on your current mortgage standing, in regards to rate and payment and many other financial goals. It may make sense to get cash out if the current market conditions provide an incentive for keeping your payments equal to what they are now or lowering your payments. This all depends on the current market conditions and the current interest rate.
Using the equity in your home is a great source when it comes down to those unplanned expenses. See the current mortgage rates or get in touch with me for a no obligation refinance quote.