Cash Out Refinance : Benefits of Using Your Home Equity
There are a few great reasons to get a Cash Out Refinance on your mortgage. If you have built equity in your time as a home owner, you should consider utilizing that asset for needed expenses.
This article outlines a few financial and practical reasons for a cash out refinance:
Using Credit Wisely
Lower Interest Rates
Mortgage loans have lower interest rates than many other types of credit. Credit cards, personal loans, and student loans often cost your more in interest than a cash out refinance on your mortgage would.
Having multiple credit cards or store accounts can put a strain on your monthly budget. You may not only be able to get lower interest, but you may also have lower payments each month with a cash out refinance. Paying off those debts with a cash out refinance could save you thousands and free up room in your budget.
Adding Value to Your Home
Using the funds from your cash out refinance to renovate or make improvements to your home can be a smart investment. In terms of resale value you can add value to your home by renovating and updating. Bathrooms, the kitchen, replacing doors and windows, and updating the flooring are great ways to increase the value of your home.
Continuing Your Education
Going back to school is a great way to increase your earning potential. Many people utilize a cash out refinance to pay for higher education, because the interest rates are often better on a mortgage loan than rates on students loans.
Investing in your small business, purchasing equipment, or using a cash out refinance to access capital can be the best way to increase your income or improve your business. Because small business loans are considered high risk loans, they are often difficult to qualify for and come with higher interest rates.
We Make the Process Easy
At TexasLending.com we have closed cash out refinance loans in as little as 10-15 days. Our goal is to keep you well informed and make your experience as easy as possible.
Our licensed loan officers are working with your best interests in mind. If a cash out refinance is not the best option for your needs, we will be honest and let you know. We aim to help you, not sell you on a financial decision that is not the best decision for you.
Maybe one of the best reasons to choose TexasLending.com as your lender is our Customer Loyalty Program. As a returning TexasLending.com customer we will refund the appraisal fee for your cash out refinance at closing.
Whatever your reason is for considering a cash out refinance, we are here to help you be informed. Reach out to us with your questions about your potential to utilize your home equity.
Ready to apply for a cash out refinance? Get started at today!