Does your house need a new deck? Are you modernizing your kitchen? Maybe adding a pool? Use the equity in your home to get it done with a cash out refinance!
What is a cash out refinance?
In short, a cash out refinance is when you take out a new mortgage for the current value of your home, then the equity that was accrued over your previous mortgage is paid out to you in a lump cash payment. The cash is yours to spend as you see fit and can be a useful tool for savvy homebuyers who may want to pay down debts, do some home repairs or renovations, or even pay for their children’s college tuition.
With a cash out refinance, your first mortgage is purchased by the lender, and they replace it with a new mortgage based on the current value of your home. Where a traditional home equity loan acts as a second mortgage, and lets homeowners borrow money with the equity in their home as leverage. If a refinance is like buying your house from yourself, a cash out refinance is like selling your house to yourself for more money.
Use your home equity.
On your home.
One of the potential uses for a cash out refinance is home renovations or repairs. For example, If you have urgent repair needs and don’t have enough cash on hand, using your equity can be a convenient way to pay for it.
The same strategy can be used for renovations like kitchen or bath remodels, additions, and more. As a homeowner, a cash out refinance is a great financial tool to be aware of.
For your debt.
Another potential benefit of a cash out refinance on your home is debt consolidation. If you have significant credit card, student loan, or other debt, the interest rate on a cash out refi might be significantly lower than your other interest rates. Using the cash out to pay off your debt and consolidate it into your mortgage reduces your interest payment, and gives you more time, reducing your monthly payment obligation.
Talk to your Benchmark loan officer.
If you are interested in learning more about a cash out refinance, reach out to your local Benchmark loan officer and get a personalized loan analysis to see if a cash out refi is right for you. Find your Benchmark branch, and contact them today for personalized service.Give us a call or contact us today. At Benchmark, we’ve got your back.Give me a call, send me an email, or request a call today. Along with my Benchmark community of mortgage pro’s, we’ve got you covered!
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