Cash Out Refinances
Consolidate debt, pay for a wedding or buy a new car by using the equity from your home.
What is a cash out refinance?
A cash-out refinance is when you refinance your mortgage and the new loan is larger than your current mortgage. The difference is given to you in cash or used to pay off other high interest debts. A cash-out refinance is a great way to access the equity in your home and change your loan terms for additional savings.
Reasons for a cash out refinance
The most popular reason for a cash-out refinance is to pay off high interest credit cards. Consolidating your debts into one payment is a great way to free up additional cash flow and potentially increase your credit scores. The amount of cash you can access in your equity will depend on your credit score in addition to other loan guidelines. Before the mortgage crisis, it was very common for homeowners to access 100% of their equity. Now, it is limited to 80%-95%.