Take advantage of today’s rates to create a backyard paradise, finance an addition, or build out that home entertainment center you’ve always wanted.
Cash-out refinancing has some major advantages for homeowners as mortgage loans may provide the best interest rate when you need to borrow money. Home loans also potentially offer significant tax advantages* as the interest you pay on these loans may be tax deductible. The biggest advantage is in having access to a large amount of cash that you may use in any way you choose.
Think of your home as an investment, the home improvements you make will enhance the value of your home and make the experience that much more enjoyable. At Freedom Mortgage we can offer you the funding you need to strengthen that investment with renovations, updates and repairs.
The simple explanation of a cash-out refinance is that you are refinancing an existing mortgage loan, where the new loan represents a larger amount than the current amount due, and the homeowner receives the difference in cash at closing. These funds may be used for such items as home improvements or debt consolidation.
Here is a typical scenario: You own a $200,000 home, but you still owe $100,000 on the loan and you need $20,000 to build an in-ground swimming pool with a deck. With a cash-out refinance, you may be able to obtain a new loan worth $120,000 (the $100,000 you owe, plus the $20,000 in you need for the project). It is important to keep in mind that this is a refinancing and you must be comfortable with the new terms and interest rate of your new loan which include all applicable fees and closing costs.
Contact us today to learn more about our cash-out refinancing programs.
*Consult a tax advisor for further information about the deductibility of interest and other charges.
Latest posts by Matt Gentile (see all)
- Pros and Cons of a 15 Year Mortgage - June 11, 2018
- All About Closing Costs - June 4, 2018
- Rates May Be Rising, But Homes Are More Affordable Today Than You Think - May 9, 2018