Reasons for a Cash-Out Refinance

Consolidating high-interest debt, such as credit card debts, student loans and personal loans is a good use of a cash-out refinance. Currently, credit card interest rates are about four times higher than mortgage interest rates. This could make for significant savings. You may also receive tax benefits on mortgage interest, which is not often true about credit card and personal loan interest.

You can also use the cash for major purchases or unexpected expenses where financing may not be available or have higher interest rates. Some other common uses are: home improvements (which could increase your equity even more!), educational expenses, and investments.

What is a Cash-Out Refinance?

A cash-out refinance lets you refinance your current mortgage, borrow more than you currently owe and keep the difference (home equity) as cash. It could be a great way to unlock your hard-earned equity and get the cash you need.

A cash-out refinance is one way to unlock the equity you’ve built in your house. Consider this example:

Your home is worth:

$350,000

-

Your current mortgage is:

$200,000

= Your Equity: $150,000

With a refinance, you could cash-out a portion of this equity. If you wanted to take out $60,000 in cash, your new mortgage principal amount would be the current balance of $200,000 plus $60,000 totaling $260,000.

*Illustration does not reflect actual cash values and does not include closing costs, escrows, prepaids, or elected expenses.

How Does a Cash-Out Refinance Work?

If you owe less than your home is worth, you have equity and you may be eligible for a cash-out refinance. Since you already own the home, refinancing will be a smooth and painless process.

The process for a cash-out refinance is simple. Complete a basic loan application, get an appraisal to determine your home value (and equity), sign the paperwork to make your new home loan official, and four business days later you will receive a check for funds requested.

Why Use RP Funding?

The No Closing Cost Refinance was created to get you more cash at closing and help you make the most of your home equity.

Other lenders may fold your Closing Costs into your loan financing instead of actually paying the Closing Costs for you like RP Funding does. This ultimately reduces the hard-earned home equity that you are able to access and costs you more money over the life of the loan.

Call today to see if you qualify for our No Closing Cost options