Pay off debt - Cash-out refinancing rates remain incredibly low, allowing you to save thousands in interest when you pay off credit card debt, medical bills, auto loans, and even student loans.
Fund home improvements - make your home look better and feel better, all while increasing your home's value.
Finance a new home - maybe it's a forever home, an investment property, or even a vacation home. No matter your need, the extra cash from your home equity can help cover the cost of a down payment.
Cover college tuition - do your part in making sure your child doesn't accrue too much debt immediately after high school. There are many refinance programs that offer lower interest rates than student loans.
Significantly lower rates than credit cards and personal loans
Affordable way to finance larger expenses
Choose from Conventional Cash-Out Refinance Loans or government-backed options like FHA or VA Cash-Out Refinance Loans.
Minimum credit score often 620
Ability to borrow 80% of your home equity (though VA loans can access 100%)
Loan payments may be tax-deductible
You may boost your credit score by paying down higher-interest debts
Closing costs may be rolled into the loan, so you're not paying out of pocket costs on your refinance
How cash-out refinancing works
Home equity is on the rise across the country, which is great news for homeowners. In the second quarter of 2021, the average homeowner gained approximately $51,500 in equity during the past year. Such growth provides a strong financial cushion for many Americans.
Here's how it works and how you can benefit. As your home increases in value and you pay money toward your loan principal, you grow your home's equity. That equity can be accessed as cash via a mortgage cash-out refinance.
Your lender will help you replace your current mortgage with a new one that has a higher balance. You are refinancing for more than you owe. So, the funds you receive pay off your existing loan. Then, the difference between the two loans is distributed as one lump sum of cash.
Let's consider an example:
Home value: $500,000
Max. refinance loan amount (80% of home value): $400,000
Current mortgage balance: $350,000
Maximum cash-out: $50,000
Since you have to leave 20% equity in your home, the maximum amount you'd be able to withdraw from your $500,000 home is $50,000.
Cash-out may not be for everyone, but you may be surprised by your eligibility and available rates. Make the call today, and let our expert team guide you through the process. A salary-based mortgage consultant is happy to discuss custom mortgage refinance solutions before you move forward.
We're currently saving customers up to $1,000 a month, and that's a big reason why we're one of the nation's top cash-out refinance lenders. We'd love the opportunity to assist you.