Do you need cash for home improvements, to start a business, pay for medical expenses or build an emergency fund? A cash-out refinance mortgage offers flexibility and variety that meets a diverse range of homeowner needs.
Improved cash flow and reserves. Using a cash-out refinance to pay off high interest revolving debts can put you in a better cash flow position.
Build an emergency fund. You can use a cash-out refinance to put money in the bank just in case of emergencies for an unforeseen circumstance.
Better interest rates, improved credit scores. Interest can be lower in a cash-out refinance than on a home equity loan and other loans such as home improvements loans or business start-up loans.
Tax benefits. You can roll your high-interest debt into a mortgage payment. Mortgage interest may be tax deductible. Contact your tax advisor for more information.
Spend wisely. Even before you consider the math, take a close look at how you plan to spend the money from your cash-out refinance. If you’re going to make payments for 15 or 30 years, it makes sense to spend the money on something enduring (like an addition to your home that will increase its value or to start a business).