LUDLOW, Vt. – Life happens, and sometimes you need some extra cash. Ever consider looking to your home for the answers? If your home is worth more than what you have left to repay on your mortgage, you may be able to use a cash-out refinance to increase your cash flow.
What is a cash-out refinance?
A cash-out refinance is a loan option for a homeowner whose home is worth more than what they owe on their mortgage. With a cash-out refinance, they can replace their old mortgage with a new one and get the difference – their equity – as cash to use however they want.
Why get a cash-out refinance?
Roofs get damaged, tuition comes due, unexpected medical conditions emerge. Maybe you want to build a deck, or complete an improvement project this spring. Whatever the reason is, having some extra cash flow would give you more financial flexibility and more room to breathe. With a cash-out refinance, you’ll have the cash flow you need by tapping into your home’s equity for a lump sum payment. That’s money you can access quickly.
How can you use a cash-out refinance?
Optimizing your cash flow is unique to every situation. With a cash-out refinance, you can use the funds from a portion of your home’s equity however you see fit. Common uses for a cash-out refinance include:
- Paying for education costs
- Financing unexpected expenses
- Consolidating high-interest debt
- Funding home improvements/repairs
Unsure if a cash-out refinance is right for you? That’s where I can help. If you’re looking for ways to access more cash, let’s take a look at refinancing your mortgage.
All loans are subject to credit approval and meeting eligibility and equity requirements. Restrictions may apply. By refinancing an existing loan, the payments and total finance changes may be higher over the life of the loan.
Submitted by Victoria Blodgett, production manager of Prime Lending, 802-975-0350, lo.primelending.com/vblodgett.