Your Home Is Your Most Valuable Asset
If you own your home, chances are that you’ve been told it’s your most valuable asset. In the current market it may even be an appreciating value, meaning it’s worth more now then when you bought it. However, the value in your home isn’t usually very liquid. It can be hard to transform the equity you’ve built up into cash.
Cash Out Refinance
One of the ways that homeowners with a good deal of equity in their homes tap into that value is with the help of cash out refinancing. This means you can refinance your home and take out a new loan to pay off your old home mortgage. You have a new loan, usually with a lower interest rate, or a longer term, or both. This way you get a loan that reflects the equity in your home and you can take the cash difference.
What To Know About Refinancing
An advantage to doing this is your new interest rate is typically lower than your current mortgage interest. Your mortgage interest is also typically tax-deductible. The best part is that you get cash in hand.
You can reinvest savings from other high interest debts paid off with your cash out mortgage to shorten your mortgage term and save thousands in interest. Even just a couple of extra payments can shorten the term of your loan immensely. It’s a win-win when it comes to saving money and minimizing debt.
Refinance And Save Big
Cash out refinancing can be a huge lifesaver when your finances are in a jam. The amount of debt that can paid down with this option can make bills easier to manage and prevent you from paying ridiculous amounts of interest over time. See our loan options and contact A1 to start saving money now.