Helping You Meet Your Financial Goals
A cash-out refinance replaces your current home loan with a new mortgage that’s higher than your outstanding loan balance. You withdraw the difference between the two mortgages in cash and put the money toward home remodeling, consolidating high-interest debt or other financial goals.
Say you still owe $100,000 on your home and it’s now worth $300,000. Let’s assume that refinancing your current mortgage means you can get a lower interest rate and you’ll use the cash to renovate your kitchen and bathrooms. We require you to maintain at least 20 percent equity in your home after a cash-out refinance, so you’d be able to withdraw up to $140,000 in cash.
There are many advantages to using a cash-out refinance over other types of loan products if you need a large sum of money.
Contact us if you are interested in exploring your options with a cash-out refinance and we would be happy to review your financial picture to see if it’s right for you.
Common Reasons to Use a Cash-Out Refinance