You have a bunch of plans coming up, from fall vacations to renovating several rooms in your house. But rather than draining your savings account or emergency funds, what if you could get the money to pay for these things by refinancing your home?
A cash-out refinance mortgage can be the easiest way to utilize the equity you already have in your home to access extra cash for all of your plans. If you live in Orange County, should you consider a cash-out refinance loan? This questionnaire will help you decide.
1. How long have you been paying off your home?
In order to get a cash-out refinance loan, you’ll typically need to have 20% equity in your property, which means new mortgages won’t yet qualify.
2. Can you get a lower rate?
Refinancing makes the most sense when you can lower your current mortgage interest rate.
3. Do you want to remodel your home?
One of the most common reasons for a cash-out refinance is to do renovation work on your home. If you’re hoping to spruce up your Orange County home before the end of the year, taking extra cash out of a new mortgage will be a big help.
4. Are you looking for education funding?
Whether you want to go back to school or you are sending your children to college, a cash-out refinance can help you cover some of these costs at a far lower interest rate than standard student loans.
5. Are you planning a trip?
Perhaps you have a honeymoon coming up, or you want to take the whole family somewhere new. When you take out cash with your refinance, you can use it in any way you want, including financing a much-needed vacation.
6. Can you afford your new monthly payments?
With a cash-out refinance you’re talking extra cash out on top of your existing mortgage refinance. That means even with a lower interest rate or better terms you could be paying the same or more for your new loan.
Best California Mortgages is a full service real estate and mortgage company. We are local to California and provide personalized service and have access to private and big money lenders at a fraction of the cost you would pay anywhere else. Contact us for a free consultation and we offer a no impact to your credit pre qualification at no cost to you. Contact us at 714-477-1515 or visit the contact us page to send us an email.