Take Cash Out of your LoanA cash-out refinance takes advantage of the equity you’ve built in your home and gives you money back by refinancing into a larger mortgage. In other words, you are able to borrow more than you owe on your current mortgage and pocket the difference.
What you need to know about cash-out refinancesA cash-out refinance can help you feel financially empowered by allowing you to use the equity from your home to get cash back. You can use the money received to do whatever you'd like, including paying medical bills, consolidating debt, or even going on your dream vacation.
Cash-out refinances are ideal when the overall value of your home has increased. However, cash-out refinancing can also be done if you have paid a good amount of your current mortgage down and have built a significant amount of equity. A cash-out refinancing increases the principal owed on your mortgage.
If you do not need cash back and want to refinance to reduce your monthly mortgage rates, rate and term refinance may be the answer.
*Using funds from a Cash-out Refinance to consolidate debt may result in the debt taking longer to pay off as it will be combined with borrower’s mortgage principle amount and will be paid off over the full loan term. Contact Compass Home Loans for more information