A cash out refinance is the best option for anyone looking for cash on hand or to consolidate other types of debt. We’ll help you create a cash-out plan that works for you.
WHY CASH-OUT REFINANCE?
CASH-OUT & PAY OFF DEBTS OR REINVEST
A cash-out refinance is the best option for anyone looking for cash on hand or to consolidate debt. The best thing to do with this type of refinance is have a drawn out plan with what you are looking to accomplish with this refinance. Speak to your loan officer about it because planning is essential with these options.
We most commonly see clients use this type of refinance to invest in updates in the home, pay off additional debt, or pay for an unexpected expense. Something good to know is for every 10,000 taken out in cash out equates to roughly 50 dollars additional onto your mortgage payment with a 30 year mortgage.
Pros of Cash-Out Refi
- Provides money to reinvest into other projects
- They are tax deductible
- Provides money in your pocket to pay off other debts
- Costs ~$50/month for every $10,000 you take out on 30-year loan
Cons of Cash-Out Refi
- Slightly higher interest rate
- Will pay more interest long term compared to a traditional Rate and Term refinance
- Requires an appraisal