Have you been recently thinking about the possibility of a cash out refinance for a big purchase, like a new vacation home or dream home improvement project? If so, you may be able to use the significant equity you’ve built up in your home to your advantage, while also lowering your monthly interest and payment at the same time. By exploring cash-out refinancing with Homestead Mortgage, we can help you walk away with new loan terms, as well as your desired funds.

What is a Cash Out Refinance?

A cash out refinance is a the refinancing of your existing mortgage loan, with the ability to turn the equity you have built up in your home into cash. Your new loan would be for a larger amount than the existing loan. You the borrower would then get the difference between the two loans in cash.

Cash-Out Refinance Benefits

If you’ve been in your home for some time or you’ve recently made some upgrades. chances are your home may be worth more than what you currently owe on your mortgage. The difference between your home’s value and what you owe on it is your available equity. There are lots of reasons you may want to tap into your home’s equity, and when you choose a cash-out refinance, you have the ability to do so.

• Pay off debts like credit cards, personal loans or car loans
• Buy a second home or vacation home
• Make home-improvements or upgrades
• Fund a nest egg or other investments
• Pay for your child’s or grandchild’s college tuition

Is a Cash-Out Refinance Right for Me?

A cash-out refinance can definitely be a good idea for many homeowners assuming you would receive a good interest rate, and know that you can easily and quickly pay back the new loan. If you need the cash now for a worthwhile cause, there are many things that a cash-out refinance can help you cover. To learn more about your cash-out refinance home loan options, contact the Homestead Mortgage home loan expert Tim Barr today!