Refinance and Take Cash Out
Benefits of Cash Out Refi's
Cash out Refi's, refer to refinancing your existing home loan with a larger home loan. Pretty simple, right? Not so fast... Cash out refinance loans have a different set of guidelines and pricing adjustments compared to a none cash out refinance or a purchase. An example, if a home is appraised at $100,000 and the borrower's outstanding mortgage loan is $60,000, it is possible to get an 80% cash-out refinance for a loan of $80,000 (80% of $100,000). The new mortgage of $80,000 will pay off the $60,000 loan and leave $20,000 cash-out to the borrowers minus any closing costs or tax/insurance impounds.
What Are The Benefits?
Getting cash out on your home can have many benefits. Every scenario is different! But, many clients get cash out to pay off debt that is has a higher interest rate. If you have a credit card at 18%, or a personal loan at 10%, getting cash out and paying that debt off with a lower interest rate can be very beneficial.
Other Uses:
• Getting cash out to buy an investment property or second home
• Paying off a higher rate 2nd mortgage or Home Equity Line of Credit (HELOC)
• Paying off student debt
• Getting prepared to pay for your Children's college tuition (my kids are 3 and 6, college is not gonna be cheap!)
How Can We Help?
If you are looking for this type of refinancing, Wain Capital LLC can find a program suited to your financial needs. We offer cash-out programs for Owner-occupied homes and Non-owner occupied homes, with low, affordable rates.