A “cash-out refinance” means you can take cash from some of the equity in your home when you refinance. This is a great way to borrow money, because the interest rate on mortgage loans are usually much lower than any other line of credit.
There are also tax benefits because mortgage interest is tax-deductible; this is one of the reasons why so many borrowers refinance their homes to pay off all their credit card debt (which is not tax deductible).
The most common reasons to cash out is to pay off debts, which can increase your cash flow because you’re lowering the monthly payments by extending the payments over a longer term.
You can take cash out on a refinance to:
- Pay off other high-cost loans (the interest on which may not be tax deductible)
- Pay for the cost of education
- Make home improvements
- Make investments
- Finance retirement
We’ll help you choose a mortgage loan that’s right for you. We’ll guide you through the process and expedite the paperwork so you’ll have your cash in hand before you know it. Give us a call at 800-974-4434 and let’s get started.