A cash-out refinance is a way to tap into the equity you’ve built in your home by refinancing your mortgage for more than you currently owe and taking the difference in cash. For example, if your home is worth $300,000 and you owe $200,000, you could potentially refinance for $240,000, allowing you to access $40,000 in cash. This extra money can be used for home improvements, paying for college, or other needs. While the new mortgage amount will be higher, the payment could be lower if you secure a lower interest rate. Additionally, the cash you receive isn’t considered taxable income. Note that by choosing a cash-out refinance, you’ll reduce the equity in your home and take on the risk of owing more than your home is worth if the housing market declines.
Seek professional help from a mortgage officer to know more about cash-out refinance option.
Source: Forbes Advisor
Ready to sell? Know your home’s worth, click here.
Homes for sale in Carmel Valley click here.
Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
