Buying a home is probably one of the biggest investments you’ll ever make, and you likely want to do everything you can to make sure your home is as comfortable and up-to-date as possible. But it can be tough to build up the necessary savings to complete home renovations and repairs.
A cash-out refinance may be your answer. It can help you accomplish your home improvement goals, so you don’t have to rely on credit cards, a personal loan or a second mortgage. A cash-out refinance can also help you use the money you’ve already paid into your mortgage to do things like cover repair bills, consolidate or pay off debt or even eliminate your outstanding student loans.
Contact us to learn more about cash out refinance loans and how we can assist you.
As your mortgage matures, you gain equity in your home. Equity refers to the amount of a home’s value that you’ve actually paid off. You can gain equity in two ways:
A cash-out refinance is a type of mortgage refinance that takes advantage of the equity you’ve built over time and gives you cash in exchange for taking on a larger mortgage. In other words, with a cash-out refinance, you borrow more than you owe on your mortgage and pocket the difference.
Unlike when you take out a second mortgage, a cash-out refinance doesn’t add another monthly payment to your list of bills – you pay off your old mortgage and replace it with the new mortgage.
When you refinance, you can do anything you want with the money you take from your equity. You can make repairs on your property, catch up on your student loan payments or cover an unexpected medical or auto repair bill. Cash-out refinances also usually give you access to lower interest rates than credit cards. If you need extra cash to cover expenses, a cash-out refinance could be a great option.
Let’s say that you’ve bought a home for $200,000 and you’ve paid off $60,000. This means you still owe $140,000 on your home. Let’s also say that you want to make $20,000 worth of renovations.
With a cash-out refinance, you take a portion of your equity and then add what you’ve taken out onto your new mortgage principal. This means your new mortgage would be worth $160,000 – the original $140,000 you owed on the home plus the $20,000 you need for renovations. Your lender will give you the $20,000 in cash a few days after closing.
Note: these materials are not from HUD or FHA and were not approved by HUD or a government agency and in some cases a refinance loan might result in higher finance charges over the life of the loan.
Take advantage of our Cash Out mortgage loan from Quintal Mortgage Co. Contact us to 'schedule a consultation' or to 'learn more' or if ready to start your 'application' ...click below.
Don't miss out on the opportunity to secure a cash out refinance loan to consolidate debt or for any other reason. Contact us today and let us help you make that improvement on your dream home.