Should you Consider a Cash-Out Refinance?

Mortgage rates are at all time lows and it’s a great time to consider refinance options. You may be able to get lower rate, lower payment, and take cash out all at the same time. What would you do with an extra $10k-50k dollars funds if you had it? What is your home worth and how much do you currently owe? What is your current rate and how much is your and monthly payment?

Loan programs including conventional, FHA, VA, USDA, and portfolio loan programs offer a cash-out refinance option. Working with dozens of lenders, JZ Mortgage provides the best mortgage programs available for our clients.  We make it easy for homeowners to access the equity in their homes.

If the pandemic drained your bank accounts, you don’t have to put your plans on hold. Whether you want to remodel, get out of debt, or just need an emergency fund, a cash-out refinance may help.

When should you consider a cash-out refinance? Check out the most common reasons.

 

Setting up an Emergency Fund

Before the pandemic, more than 30 percent of Americans did not have a 6 month emergency expense fund. Today, these numbers are worse.  An emergency fund helps you pay your bills and fund emergency situations such as illness, injury, loss of work, broken car, or a broken furnace. Without 3 to 6 months of expenses put aside, you may find yourself in a difficult financial situation should an emergency arise.

Today’s low interest rates make it easy to get that emergency fund from the equity in your home.   You’ve earned the equity; now put it to good use – helping you in the face of an emergency. If you get injured or lose your job you may not be able to refinance.  An emergency fund will help you pay your mortgage and bills for a few months, so you can get back on your feet. It’s better to be safe than sorry.

 

Pay for Home Renovations or Remodeling

There’s no better way to use your home’s equity than to invest it back into your home. With proceeds from your cash-out refinance you can update your home the way you want it.  Upgrading the house will usually increase the value as well.  Renovation loan programs are also great for home renovations.  Renovation loans can be done on purchase or refinance.

Are you thinking of a room addition, remodeling your kitchen, or bathroom, putting in a pool, or fixing the roof? Your home’s equity can help you fund all of these projects at interest rates well below any other loan program rates you may get.

 

Consolidate High Interest Debt

Everyone’s talking about budgeting and saving money today, especially with so much uncertainty. If you have high interest credit card debts weighing you down, consider refinancing and consolidating them with your mortgage.

You’ll cut your rates down to a fraction of your credit card interest rates and have only one payment each month. You can save money just by consolidating your debt. Take the savings and invest it or put it in your emergency fund for a rainy day.

 

Is a Cash-Out Refinance Right for You?

Let us help you decide if a cash-out refinance is right for you. We’ll discuss your options or you can start with our Free Refinance Advisor online. All information is kept private, and it helps you choose the right mortgage for your needs.

We know how important your mortgage is and we’re here to help every step of the way, ensuring that you make the most of your mortgage options. It’s no cost or obligation to get pre-approved with us and find out your available options. Contact us today!