• Cash-Out Refinancing

  • Cash-out refinancing lets you turn a portion of your home’s equity into money you can use however you want. It can be a solution to finally paying off credit cards, consolidating debt, affording college or remodeling your home.

    How does it work?

  • Equity is the difference between your home’s value and how much you owe on your loan. With cash-out refinancing you can receive a portion of your equity in cash. 

  • If your home’s value is $500,000
    And you still owe $300,000
    Your equity equals $200,000

    Cash-out refinancing would allow you to take a portion of your $200,000 equity in cash.

  • For example, if you choose to take $50,000 of this equity in cash, your refinanced mortgage will look like this:

  • Remember, your new loan will be greater than your current loan. However it’s not uncommon for borrowers to receive a lower interest rate, or a shorter term. 

  • Equity you turned into cash: $50,000
    Plus what you still owe: $300,000
    Your new mortgage: $350,000

     

  • You can use the money however you like.

    The cash-out option is a great way to cover the costs of expected or unexpected life events, and any other personal or financial needs you might have.

    • Pay down or pay off high-interest credit card debt
    • Consolidate multiple home loans into a single payment at a lower rate
    • Pay off auto loans or other debt
    • Cover college or other education expenses
    • Remodel or renovate a home
    • Take care of health related expenses
    • Make real estate or other investments
    • Accommodate a growing family, divorce or other life events
    • Even take a dream vacation