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The growth of home equity is prompting more Missourians to take cash out of their homes to fund home repairs, college tuition and other costly endeavors. Let the experts at Hometown Equity Mortgage guide you in your decision in making use of a cash-out refinance home loan. We are top rated mortgage lenders in Missouri, Illinois, Kansas, Wisconsin, Floria and California.
Here’s an Example
Cash out refinancing refers to when you refinance an existing mortgage loan with an even larger new loan. You can take the cash difference between the old and new loan and spend the extra money however you wish.
Cash out home loans work best where you can lower your mortgage rate and increase the loan balance. The new mortgage can stay affordable by making the refinance a longer payment term.
What’s an example of a cash out refinance loan?
If you bought a home for $200,000 and still had $150,000 left on the mortgage, a cash-out refinance would allow you to take out a new loan at $170,000, hopefully at a lower interest rate than the original loan, 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. You won’t get any benefit if you’re adding $10,000 to your mortgage if the fees cost you the same. It’s also not good to refinance if your interest fees go up. Lastly, if you have to borrow more than 80% of your home’s value, you’ll need costly private mortgage insurance. Ask us at Hometown to 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