Cash Out Refinance Mortgage and Loan Options
Your home is your largest asset. Use it to your advantage by turning some of your home equity into cash. Cash out refinancing occurs when you use a cash loan to refinance your mortgage for more than you currently owe; then, you pocket the difference. Cash out refinance mortgages can offer you several benefits over other loans, including:
- Lower interest rates: Cash out refinancing can help you lower your mortgage rate because interest rates are typically lower than on a home equity loan and other loans.
- Combine mortgages: Unlike a home equity loan, cash-out refinance loans replace your first home mortgage leaving you with one monthly payment.
- Consolidate debt: It may be a good idea to refinance high interest credit card debt into your mortgage.
- Tax benefits: Mortgage interest is generally tax deductible, so there can be significant tax benefits when you roll your high interest debt into a mortgage payment. Consult your tax advisor.
The money you receive from your cash out refinance is yours to spend how you wish. Use it to finance a home improvement project, pay for your child’s college or buy a vacation home. Contact a New American Funding representative today to find out if a cash out refinance loan is right for you.