What is cash-out refinance? Imagine that you owe somebody $1,000. You want to take out another loan, and you want to have extra cash for another project, so you take out a loan of $1,500. This is the essence of what a cash-out refinance is. You take out a new mortgage to replace the old mortgage plus an extra amount for your other needs. Benefits of taking out a cash-out refinance What are the benefits of you taking out a cash-out refinance mortgage? One of the most beneficial reasons for taking out a cash-out refi is the favorable terms you can get as a borrower. When you take out a refi, your monthly payment decreases. You can also renegotiate your loan terms – lower interest rates, remove or add names on the loan, and possible cash access. How will you know how much cash you are going to get? The lender will compute your property’s loan-to-value ratio, your credit profile, and the bank’s standards. Why avail of a cash-out refinance? If you have wanted to reduce your monthly mortgage payment, this is your chance to do so. Remember that interest rates go up and down, and if you qualify for a cash-out refi when rates are down, imagine the money you are going to save in the long run possibly. Timing is key on this one.
There are a host of possibilities for a borrower like you. So if you think that cash-out refinancing will work for you, let us know, and we would gladly talk with you and explore the possibilities of working with you. We can help you assess your current loan standing, your credit profile, and see how much you can avail. Don’t be scared to reach out. Who knows, getting a cash-out refinancing on your current mortgage may be your ticket to saving money.