What Is A Cash Out Refinance?
A Cash Out Refinance Option will pay off the original loan and replace it with the new mortgage. When interest rates fall, consumers will often choose a refinance to take advantage of the lower interest rates. With a cash out refinance you might be able to enjoy a lower interest rate than your existing mortgage, but you will also access some of the equity in your home in exchange for cash that can be used to pay off credit card debt.
- Extended Loan Repayment Period (15, 20 Or 30 Years).
- Must Qualify For Loan With Both Income, Debt To Income And Credit.
- High Closing Costs, Though This Can Usually Be Added To The Loan Balance.
- 30-60 Days To Close Loan.
- Moving Unsecured Debt To Secured Debt.
- Lower Interest Rate.
- Lower Monthly Payments.
- Single Payment.
- Interest May Be Tax Deductible Up To $100,000 of Cash Out Portion.
- Fixed Interest Rate Option.