Take control of your finances Now! Refinancing your home is easier than you may think. Our mortgage specialists take the stress and complexity out of process, and with super low rates and we can get you into a mortgage you want for less.

Mortgage refinancing lets you save money

Refinancing simply means taking out a new mortgage on your home. The new loan pays off the old mortgage and allows the opportunity for the borrower to receive extra money – cash out is the term used – that can be used to pay other debts.

Is smart idea use your home equity to refinance and consolidate your debt can be a good way to lower your overall interest rate.

Home equity is the appraised value of your home minus the amount you still owe on your loan.

The more equity you have, the more money you may be able to get from a cash-out refinance. Many homeowners take cash out to pay off high-interest debt or make home improvements.

Buying your home is probably one of the biggest investments you’ll ever make, and you likely want to do everything you can to make sure your home is as comfortable and up-to-date as possible. But it can be tough to build up the necessary savings to complete home renovations and repairs.

A cash-out refinance may be your answer. It can help you accomplish your home improvement goals so you don’t have to rely on credit cards, a personal loan or a second mortgage. A cash-out refinance helps you use the money you’ve already paid into your mortgage to do things like cover repair bills, consolidate multiple debts or even pay off your outstanding student loans.

Cash-out home mortgage refinancing

What is a cash-out refinance?A cash-out refinance replaces your current home loan with a new mortgage that’s higher than your outstanding loan balance. You withdraw the difference between the two mortgages in cash and put the money toward home remodeling, consolidating high-interest debt or other financial goals.

How a cash-out refinance works

When you refinance a mortgage, you simply replace the existing loan with a new one for the same amount, usually at a lower interest rate or for a shorter loan term or perhaps both.

Cash-out refinancing, however, is different because you’re withdrawing a portion of your home equity in a lump sum. You’ll pay slightly higher interest rates for a cash-out refinance because you’re increasing the loan amount. Lenders generally limit the amount you can withdraw to no more than 80 percent of your home’s value to ensure you maintain an equity cushion.

Benefits Of A Cash-Out Refinance

1. Reduce the monthly payment. When your goal is to pay less every month, you can refinance into a loan with a lower interest rate. Another way to reduce the monthly payment is to extend the loan term — say, from 15 years to 30. The drawback to extending the term is that you pay more interest in the long run.

2. Tap into equity. When you refinance to borrow more than you owe on your current loan, the lender gives you a check for the difference. This is called a cash-out refinance. People often get a cash-out refinance and a lower interest rate at the same time.

3. Pay off the loan faster. When you refinance from a 30-year mortgage into a 15-year loan, you pay off the loan in half the time. As a result, you pay less interest over the life of the loan. There are pros and cons to a 15-year mortgage. One downside is that the monthly payments usually go up.

4. Get rid of FHA mortgage insurance. Private mortgage insurance on conventional home loans can be canceled, but the Federal Housing Administration mortgage insurance premium (MIP) you pay on FHA loans cannot in many cases.

   The only way to get rid of FHA mortgage insurance premiums is to sell the home or refinance the loan when you have accumulated enough equity. Estimate your home value, then subtract your mortgage balance to calculate your home equity.

5. Switch from an adjustable to a fixed-rate loan. Interest rates on adjustable-rate mortgages can go up over time. Fixed-rate loans stay the same. Refinancing from an ARM to a fixed-rate loan provides financial stability when you prefer steady payments.

6. Refinance to Pay Off Credit Cards Debt. Many homeowners refinance to consolidate their debt. At face value, replacing high-interest debt with a low-interest mortgage is a good idea.

   They accomplish this with a cash-out refinance: getting a mortgage for more than they owe on the home, taking the difference in cash and paying off high-interest debt with it. Will be good idea if you are reducing your credit cards interest, 12%, 15%, 18%, 21% etc.

Debt consolidation through a refinancing mortgage is an attractive and beneficial way to pay off loans and eliminate high-interest debt. The prime factor for qualifying for debt consolidation refinancing is based on the equity in your home which is the appraised value of your home less what you owe on the mortgage.

A debt consolidation loan allows the borrower to use a single, lower-interest loan acquired through refinancing to pay unsecured debt like credit cards, student loans and medical bills as well as the mortgage.

Highest interest rate can erase your saving fast, focuses on your debts like credit card and student loan debts with the highest rate of interest. The goal is to pay off the highest interest rate debt as quickly as possible, because it’s costing you the most.