Utilize improved equity. When your home’s value increases, you may qualify for a Cash-Out refinance to make use of that money, which can be reinvested in the value of the home.
Cash-Out Refinance: Making full use of your money
Acquire cash for projects. Refinancing with Cash-Out Refinance can mean having extra money for projects or simply using the money for your own investments.
Potentially secure better terms. If the initial terms of your financing were weak, a Cash-Out Refinance can potentially yield you better terms, which can be a benefit to your monthly budget.
What You Need to Know about the Cash-Out Refinancing Option
Cash-Out Refinancing is more common than you think. According to statistics from MBA.org, Cash Out Refinance loans were among the most popular refinancing loans in the country, with 63% of such loans comprising all refinancing in the fourth quarter of 2017.
This method of refinancing has recovered. After the home mortgage crisis over a decade ago, confidence has been restored and home equity is moving up, making it a good time to secure low interest rates and excess cash.
Like any other refinance loan, Cash-Out Refinance loans help you take advantage of interest rates. Worried that interest rates might climb in the next five years? Ten years? Taking advantage of current interest rates with a Cash-Out Refinance can help you use extra cash while interest rates remain low.
There’s still room for home equity growth. According to some statistics, the historical rate of Cash-Out Refinancing and home equities suggests that the trend is moving upward, which means there’s still plenty of opportunity for utilizing extra cash with a Cash-Out Refinance.
Put your money to use. Cash-Out Refinancing means you can turn money that was sitting in your home’s equity into liquid cash that you can then put to use in the way you see fit, such as paying off debt elsewhere, going on a vacation, saving for college tuition — just about anything!
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
We refinanced our mortgage with Pieter Thomassen at Accelin and were happy with the process. Pieter was very responsive, followed up and explained the next steps in detail. He got us a great rate and I can highly recommend working with him.- Gabi K.
I worked with Eric Miller to refi my home loan. He was great and helped us find a loan that saved us money each month and shaved years off the life of the loan. Save money today and in the future?!?! Yes please. Thanks Eric for the great work.- Ryan B.
I have worked with Callie Davis and Accelin Loans for three refinances now. I did a bit of rate shopping, and Accelin had the lowest rates and Callie and the other Accelin associates were fantastic to work with. Efficient and easy processing of my loans. I highly recommend Callie Davis and Accelin!- Lane B.
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
What Do You Need to Know about a Cash-Out Refinance Loan?
What is a Cash-Out Refinance Loan?
This is a straightforward home refinancing loan. However, it includes unique circumstances. If you only owe $200,000 on a home that has appreciated to a value of $300,000, for example, you may qualify for refinancing that allows you to receive a loan over the amount of equity you hold, giving you an excess of cash.
What are the terms of a Cash-Out Refinance loan?
The terms are remarkably similar to many mortgages. What’s different is whether your home qualifies—it helps when you have built equity in your home, especially when you’ve purchased a home that’s appreciated in value over time. Like many refinance loans, you will have a new monthly payment to satisfy the terms of the new loan.
What can I do with the extra money?
That’s up to you. Many people choose to reinvest this money into the value of their home by using the money for renovations. Other people pay down other debts they have, which in turn makes their monthly mortgage payment far more manageable. What’s important is to use this cash in a way that’s responsible for your given financial situation.
How much cash will I get?
This depends on factors such as the previous and current value of your home, but many people can expect to borrow as much as 80% of the home’s current value. However, this is different for every individual, so make sure that you do your research before you set clear expectations for the money you’ll receive.