If you’re in the market for a cash-out refinance, Right Trac Financial is here to help. We are experts in the field, and we can help you find the best solution for your needs. Whether you need to take cash out for home improvements, paying debt, or any other purpose, we can help. Read on to learn more about cash-out refinancing and why Right Trac Financial is the mortgage broker you can trust.
What is cash-out refinancing and how does it work?
Cash-out refinancing is a type of mortgage loan that allows you to take cash out of your home equity. With this type of loan, you refinance your existing mortgage loan and take out a new loan for more than the amount you owe. The difference between the two loans is given to you in cash. You can use that money for any purpose you choose, such as home improvements, debt consolidation, or anything else.
Why Right Trac Financial?
When it comes to cash-out refinancing, you need a mortgage broker you can trust. At Right Trac Financial, we are experts in the field and we can help you find the best solution for your needs.
If you have been turned down for refinancing by big banks, we want to talk to you. We specialize in getting loans for individuals that the big banks don’t have time for.
We have more than 40 years of experience helping folks just like you with their cash-out refinancing needs.
Why do people refinance?
People refinance for a variety of reasons. Some people do it to get a lower interest rate, while others do it to take cash out of their home equity. Debt restructuring and consolidation is one of the most common reasons people refinance. By taking cash out to pay off high-interest loans, you can end up saving hundreds of dollars each month. Or if you are looking to consolidate your debt, we’d be happy to help with that too!
Whatever your reason, we can help you find the best solution for your needs.
What are the benefits of cash-out refinancing?
There are a number of benefits to cash-out refinancing, including the ability to lower your interest rate, consolidate debt, and take cash out of your home equity for home improvements. Regardless of the reason you want to refinance, we will find the best solution for you. We are here to help you understand all of the benefits and find the best loan solution for your needs.
Some of the benefits of cash out refinancing are:
- Lower your interest rate – One of the benefits of cash-out refinancing is the ability to lower your interest rate. If you have a high interest rate on existing loans or mortgage, you may be able to get a lower rate by refinancing.
- Consolidate debt - Cash-out refinancing can also be a great way to consolidate debt. If you have multiple debts with high interest rates, you may be able to save money by consolidating those debts, paying off a big chunk, and bundling what’s left into one loan with a lower interest rate and a single payment.
- Improve your home – Another benefit of cash-out refinancing is the ability to use the cash to improve your home. If you need to make repairs or improvements to your home, you can use the cash from your loan to do so. Learn more about home improvement loans>>
- Any other expense - Cash-out refinancing can also be a great way to pay for any other expenses you may have. If you need cash for a major purchase, such as a car or boat, or for paying for college, you can use the cash from your loan to make that purchase.
How much can I cash out?
The amount of cash you can take out depends on a number of factors, including the value of your home, the amount you owe on your existing mortgage, and your credit history. We can help you determine how much cash you may be able to take out of your home equity.
Get in touch with us today to learn just how much “cash out” makes sense for you.
What are the risks of cash-out refinancing?
Cash-out refinancing does have some risks, but we can help you understand those risks and make sure you are getting the best loan for your needs. Some of the risks of cash-out refinancing include:
- You could end up owing more than your home is worth – If you take out a cash-out refinance and then experience a decrease in the value of your home, you could end up owing more on your loan than your home is worth. This is one of the risks of taking cash out of your home equity. But the same applies to taking out a loan for purchasing a home. It all depends on the real estate market.
- You may have to pay private mortgage insurance – If you do not have enough equity in your home, you may be required to pay private mortgage insurance. This is an additional cost that can add to the overall cost of your loan. We’ll be happy to explore your situation and let you know if this applies to you.
- You could end up with a higher interest rate – Cash-out refinancing typically comes with a higher interest rate than other types of loans. This is because it is a more risky loan for the lender. We’ll work with you to manage your interest rate and get you the best financing for your situation.
- You may have to pay closing costs - Cash-out refinancing can come with closing costs, which can add to the overall cost of your loan.
While cash-out refinancing isn’t always the best option, in many cases it can save you real money over the life of the loan.
Right Trac Financial can help you understand all of the risks and benefits of cash-out refinancing and find the best loan for your needs. We have more than 40 years of experience helping folks just like you with their cash-out refinancing needs. Give us a call today to learn more about cash-out refinancing and how we can help you.
How to qualify for a cash-out refinance loan?
There are a few things to keep in mind that will affect your qualify for a cash-out refinance loan. Most issues are not deal-breaker, and we can usually work with the borrower and the lender to find a solution that works for everyone.
Although they aren’t always necessary, the following factors will affect your refinancing loan option:
- Your credit score - In order to qualify for a cash-out refinance, a good credit score is helpful. A good credit score is typically defined as a FICO score of 620 or higher.
- The equity in your home - You will also need to have enough equity in your home to qualify for a cash-out refinance. Equity is the difference between the value of your home and the amount you owe on your mortgage.
- A stable income - Stable income will make a difference when attempting to secure a cash-out loan. Lenders like to see that you have a job and that you have been employed for a certain period of time.
While the factors above can help, they aren’t always required. And if you meet all of these qualifications, you should be able to qualify for a cash-out refinance loan easily.
Keep in mind you don’t need to have perfect credit, or even previous years’ tax returns, to secure favorable terms on your cash-out refinancing.
We are here to help you refinance!
Cash-out refinancing can be a great way to save money or consolidate debt. But it’s not right for everyone. If you’re considering cash-out refinancing, call us today. We’ll help you understand the risks and benefits and find the best loan for your needs.
We have more than 40 years of experience helping people just like you with their mortgage needs.
Give us a call today to learn more about your cash-out refinancing options and how we can help you live a better life.