What Is a Cash-Out Refinance?
A cash-out refinance allows you to replace your existing mortgage with a new one that’s larger than your current loan balance. The difference? You get cash in hand that you can use however you like.
Why Consider a Cash-Out Refinance?
1️⃣ Debt Consolidation – Replace high-interest debt with a lower-rate mortgage.
2️⃣ Home Improvements – Increase your home’s value while making it more functional.
3️⃣ Invest in Another Property – Use your equity as a down payment on a rental or second home.
4️⃣ Tuition or Life Expenses – Fund major costs at a lower interest rate than personal loans or credit cards.
How Much Cash Can You Take Out?
Most lenders allow you to borrow up to 80% of your home’s value. For example, if your home is worth $400,000 and your current mortgage is $250,000, you could take out up to $70,000 in cash.
Is It Right for You?
A cash-out refinance can be a game-changer—if done strategically. If you plan to stay in your home long enough to benefit from the new loan and use the funds wisely, this could be the perfect financial move.
📞 Want to explore your options? Contact us today to see how much equity you could tap into!