Rates are at historic lows.
Many mortgage rates are at record lows, so this is a great time to see if refinancing is right for you. With the equity in your home, you may be able to pay for remodeling projects and other home improvements, reduce or consolidate higher-interest credit card debt, or lower your rate and shorten the term of your loan.
How does a cash-out refinance work?
So, what is a cash-out refinance? Simply put: it’s a method of refinancing your home mortgage, borrowing more than you currently owe, and keeping the difference in cash.
When all is said and done, the balance you owe on your new mortgage will be at a higher amount than your original balance. The difference between these two numbers will be the amount of the payment you receive at closing, minus closing costs. Basically, you’ll be taking out some of the money that you already paid through previous mortgage payments. In return, the mortgage principal you owe will increase.
How can a cash-out refinance benefit you?
- Home improvements
- Education expenses
- Debt consolidation
- Shorter loan term and lower rate
Contact Us Today.
Call us at 503.220.2592 to ask questions and see if a cash-out refinance is right for you.