Your home is worth money, and you’re entitled to it! With a cash-out refinance, you’re replacing existing mortgage with a new home loan for more than you owe on your house. When you do this you are able to pull out funds and use the cash for other purposes, such as:
- Paying off other credit card debt
- Home Improvements
- College tuition
- Student loans
- Purchasing a vehicle
- Buying a vacation home/investment property
- Starting a business
- Funding a wedding
Taking cash out not only allows you to access money from your home’s equity, but also provides you with the opportunity to take out a better loan. Ideal Home Loans will help you get the best deal possible throughout the refinancing process so that you can live the life of your dreams.
HELOC (Home Equity Line Of Credit)
Compared to your first home mortgage, a HELOC is an easy short term way to get access to the equity you have made in your home. Most HELOCs will have an adjustable rate and you usually only have to pay the interest during your “draw” period which can be 2, 5, or even 10 years. After this draw period a repayment schedule of what was borrowed will be set up to pay principal and interest back. This is usually set for a 15 year period. Some things to consider if you are looking into opening a HELOC
- How much equity have you increased or have in your home?
- What is the amount you would like to take out?
- How long to you plan on borrowing these funds
- What are the current interest rates for HELOCs?
- What is the current interest rate on your mortgage?
Ideal Home Loans can help you answer all of these questions and if this is the right way to pull some equity out of your home. We offer free consolations to look at your entire mortgage portfolio and offer you the best advice.