There are many good reasons to refinance your mortgage. Many people refinance to lower the rate that they are paying thus, reducing their monthly payment. Some people choose to refinance to a shorter mortgage term, for example, from a 30 year term to a 15 year term. This can save a person a huge amount of interest payments over the term of the loan. Another reason that people refinance is to take cash out from the equity that has built up in their home. The cash proceeds can be used for almost any reason such as home improvements, college tuition or to consolidate high interest rate debt. Whatever your situation is, a refinance can often be a wise financial move.
- Reduce Your Interest Rate
- Cash Out Equity for Home Improvements
- Consolidate Debt
- Lower Monthly Payments
Cash Out Refinance
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.
What are the benefits?
By cashing out on your home, you can obtain cash on the value of your own home 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. And it’s tax-deductible.
How can we help?
If you are looking for this type of refinancing, Private Lending Services, LLC can find a program suited to your financial needs. We offer cash-out programs for Owner-occupied homes and Non-owner occupied homes, with low, affordable rates.