Cashing out refers to the refinancing of a loan where the borrowers will borrow money on their own home. If a home is appraised at $100,000 and the borrower’s outstanding mortgage loan is $60,000, it is possible to enter into an 80% cash-out refinance transaction 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.
Cash Out Refinance
What Are The Benefits?
By tapping into the equity in your home, you can obtain cash to pay off debts or upcoming expenses. The refinance transaction can also provide you with a better mortgage loan interest rate that will save on your monthly mortgage payments during the loan. As an added incentive, mortgage interest can also be tax deductible!
How Can We Help?
Most Americans today are using the equity in their home as a retirement account. Whether downsizing after the “nest empties”, or possibly doing a reverse mortgage to help you enjoy your golden years, it’s good to leave yourself options in the future.
That’s why it’s so important when making a big decision like this that you work with a professional. At Sonic Loans our goal is to act more like a consultant than a pushy salesperson. Whether it’s the right decision for you and your family or not, we are honored to be trusted to join the conversation with you.
Connect with a Sonic Loans Licensed Loan Officer today to see if a Cash Out Refinance is right for you!