GOT EQUITY?

Assuming you have significant equity in your home, refinancing could actually put money in your pocket! If you need a significant amount of tax-free cash quickly, a Cash-Out Refinance may be the solution. This form of refinancing allows you to swap out your old mortgage for a new one in excess of what you currently owe, allowing you to effectively pocket a portion of the equity. It’s often most attractive to borrowers who have built significant equity in their homes and seen the value skyrocket.

With a cash-out mortgage, you’re actually taking out a larger loan to replace your current loan. The new loan pays off your old loan and you’re left with the difference. You can use these accessible funds from a Cash-Out Refinance any way you’d like. However, we commonly see borrowers seek Cash-Out Refinancing when they need to quickly conduct repairs or renovations on their home, put money into a child’s college tuition, or cover an emergency.

The benefits of Cash-Out Refinancing may leave you wanting to take out a loan on the entire value of your home, but the vast majority of loans will require you to leave 20% of your equity in your home. However, VA Loans are notably exempt from this restriction.