In a cash-out refinance, you leverage the equity in your home and receive a lump sum of cash. These home loans are often used by homeowners who are looking to make home improvements, pay down debt, or pay for any large expense.
Pay down high-interest credit card debts
The interest that you pay on credit cards is often higher than what you would pay on a home loan. Using the equity in your home to pay down high-interest credit cards can save you thousands of dollars in the long run.
- Consolidate your payments and make one, simple monthly payment instead.
- The interest from your home loan is tax deductible.*
- Paying down credit card debt may help increase your credit rating.
* Consult a tax advisor for details
Home Improvement Loans
As mortgage rates decline, many homeowners are taking advantage of the equity in their homes and are remodeling. Smart investments like remodeling your kitchen or bathroom can help improve your home’s value.
- Kitchen renovations can yield a return of between 80%-100%.
- Adding a second bathroom can yield a high return on investment.
- Cosmetic home improvements can make your home easier to sell.
For more information on a “cash-out” refinance, contact a Financial Specialist today for a free quote! We can help you review your situation and determine the best option for your future.
