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Cash out to remodel or start a business
Oftentimes you find that you are perfectly content with the location you live in but you would like to make some changes, Depending on how much equity you have accumulated in your home, you may be able to do a cash - out refinance to get the available funds to remodel. If it is a major renovation you have decided on, you may very well need a renovation loan. These loans have very specific guidelines and we would recommend calling us directly for assistance.
Cash out for health or college expenses
Life throws curve balls at us and sometimes and the home equity you have accumulated can be a solution. Unforeseen expenses such as medical, dental and other family emergencies always seem to crop up. In addition, it is increasingly more difficult to save to send your kids to college with those expenses escalating out of control. So if you find yourself dealing with these issues, consider a cash out refinance.
Consolidate Debt
Because the interest on your mortgage is tax deductible, it is often worth exploring tapping your home equity to consolidate debt. Not only will the rate most likely be lower but you can write off the interest expense. The only consideration is whether you want to spread your payments on this shorter term debt over the longer amortization period of a typical 15 or 30 year mortgage. Remember that you can always make extra payments on your mortgage to shorten the term of the loan.
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