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Home equity growth in today’s booming economy is encouraging many Missourians to use that equity to borrow for home repairs, college tuition and other costly endeavors. The experts at Hometown Equity Mortgage can help you through the process of acquiring a cash-out refinance home loan, and we make it simple. As top-rated mortgage lenders based in St. Charles County, we’re licensed and proud to serve greater St. Louis and Kansas City (Missouri), Illinois, Kansas, Wisconsin, Florida and California.
What’s Cash-Out Refinancing?
Cash-out refinancing is when you refinance an existing mortgage loan with a new, larger one. The new home loan gives you instant cash, and this type of loan works best when you’re lowering your mortgage rate and refinancing a longer payment term, to make it affordable.
What’s an Example of a Cash Out Mortgage Loan?
If your home’s worth $200,000 and your mortgage has a balance owing of $150,000, a cash-out refinance would allow you to borrow $170,000 (ideally, at a lower interest rate), pay out the original mortgage and pocket the $20,000 difference.
Is a Cash-out Refinancing Loan Right For Me?
There are times when a cash-out refinance makes sense, and other times not. There’s no benefit in adding $20,000 to your mortgage unless you’re getting a better interest rate. Also, if you borrow more than 80% of your home’s value, you’ll need costly private mortgage insurance. At Hometown, we’ll help you make the choice that’s right for you.
How do I get started?
Apply for a cash out home loan online to see if you qualify by clicking on the banner below or call us and we’ll be happy to discuss your needs at: (855) 563-4836