There are many different types of loans out there, and they can all get confusing to the beginner. That’s why we’ll be breaking down one of the more common loan types we see from homeowners – one that can be particularly helpful during the winter months – Cash-out refinancing.
What Is Cash-Out Refinancing?
A Cash-out refinancing loan replaces your current home loan with a bigger mortgage, letting you leverage the equity you’ve built up in your home and access the difference between the two mortgages in cash. That cash can go toward virtually any purpose, such as home remodeling, consolidating high-interest debt, or other financial goals.
How It Works
It’s very similar to a traditional mortgage refinance and can mean a much lower interest rate than what you currently have. However, with Cash-Out you can withdraw any difference right away. For example, say the remaining balance on your current mortgage is $150,000 and your home is currently worth $400,000. In this case, you have $250,000 in home equity. You’re saving money because of the lower interest rate, but now you can fund those kitchen and bathroom upgrades you’ve been talking about all year.
Winter is a great time to do interior renovations that increase your home’s value. During the slow real estate season, you can bump up what your home is worth and be ready to jump right into the spring busy season. If you’re considering selling but have some projects holding you up – now is the perfect time to get back on track.
At Cornerstone, we are capable of handling any size loan for any need you may have. Whether you’re looking to upgrade from a kitchen, add a new bathroom, or even add a garage – we have a program for you. Our network of lenders gives us the opportunity to provide loans for homeowners like you.
Whatever loan you need – Cornerstone Commercial Capital can help!