Cash-out refinancing lets you turn a portion of your home’s equity into money you can use however you want. It can be a solution to finally paying off credit cards, consolidating debt, affording college or remodeling your home.
Equity is the difference between your home’s value and how much you owe on your loan.
| If your home’s value is | $300,000 |
| And you still owe | $200,000 |
| Your equity equals | $100,000 |
With cash-out refinancing you can receive a portion of the $100,000 in cash. For example, if you choose to take $25,000 of this equity in cash, your refinanced mortgage will look like this:
| Equity you turned into cash: | $25,000 |
| Plus what you still owe: | $200,000 |
| Your new mortgage: | $225,000 |
It’s important to remember your new loan will be greater than your current loan. However, even with cash-out refinancing, it’s not uncommon for borrowers to receive a lower interest rate, or a shorter term, both of which offer opportunities for new savings over your current loan.
The cash-out option is a great way to cover the costs of expected or unexpected life events, and any other personal or financial needs you might have.
There are a lot of ways cash-out refinancing can help. To learn more talk to a PrimeLending Home Loan Expert. Or call 800-317-7463.
Address: 51 Mill Street Building D, Unit 15 Hanover, MA02339
Direct: 781-361-2625
Fax: 877-277-2431
Email: bmcmullen@primelending.com
Brian McMullen
Senior Loan Officer
Production Manager
NMLS#441856
Phone 781-816-2511
Branch Phone 781-709-3456
