Many homeowners’ first thought when considering the equity in their homes is a Home Equity Loan, however this isn’t the only option. Another great option to consider is a Cash-Out Refinance. With this option, homeowners are able to tap into their equity while still keeping their payments consolidated.
Is it Time to Cash Out?
A Cash Out Refinance replaces your old mortgage with a new mortgage of a greater dollar amount. This pays out your previous mortgage and writes a check to the homeowner for the equity they’ve built in their home. The cash out refinance is a great option for anyone in need of a large sum of cash and who’s built substantial equity in their property.
Consider The Timing
Something to consider when weighing your options between a cash out refinance or a home equity loan is the rate of your existing loan. Home Equity Loans are available as a loan separate from your mortgage, allowing you to keep lower rates locked in. An added benefit of using a cash out refinance to access your equity is that by paying off debts with higher interests and consolidating that debt into your mortgage, you can see tax benefits. The interest on your mortgage may be eligible for tax deductions, offering potential tax advantages as you tap into your home’s equity.
Work with an Advisor you Trust
At Evolve, our experienced Home Loan Advisors are here to guide you through the Cash-Out Refinance process, offering personalized solutions tailored to your financial needs. We offer competitive rates, flexible terms, and a seamless application process. To get started, find a Home Loan Advisor near you.
Subject to credit approval. Terms and conditions apply. Rates may vary. Consultation with tax and financial advisors is recommended. This is not a commitment to lend.