What Is Cash Out Refinancing?
A cash-out refinance is a great option for home improvements. By definition, a cash-out refinance takes cash out of your loan for you to keep. How does this work? When you get a cash-out refinance loan, you get a loan amount that is actually greater than the amount you still need to pay off on your current home mortgage. Say you owe $100,000 on your home. A cash-out refinance would get you a loan amount of more than $100,000. For example, you might get a loan for $125,000. This means you can keep the $25,000 (minus loan closing costs) and put it toward those home improvements!
How Do Cash Out Refinancing and HomeEquity Loans Differ?
A cash-out refinance loan and a home equity loan both get you money to use at your discretion at closing. Both are great for funding your dream home improvement project! You’ll need to remember that you have to pay for closing costs. In either caseBut, if you work with a VA lender like HomePromise , qualifying for a VA loan means that you may be able to borrow 100% of your home’s value. It’s worth noting that most VA lenders will cap the value you can borrow at 90% or lower. But HomePromise may approve you for 100% of your home’s value! A home equity lender may cap you at 80%, 75% or even lower.
Why Cashing Out is Easier for Most People
When it comes down to it, we recommend you look into a cash-out refinance loan first. When compared to a home equity loan, it usually offers better interest rates. Plus, refinancing and getting a new first mortgage instead of getting a second loan means you only have one home loan to worry about, which simplifies the process. Now is a great time to take advantage of low interest rates and improved home equity thanks to home appreciation in 2021. All in all, a cash-out refinance is both an easier and smarter financial decision to fund your home improvements.
Cash Out Refinance with HomePromise
When looking for a lender to help you fund your home improvements, look to us first! At HomePromise, we are committed to understanding your unique situation. Plus, we have been known to lend provide Veterans and active duty service members with a 100% loan-to-value cash-out refinance option that most lenders don’t have. This means you may receive more funds from your cash-out loan with us than with other lenders. Prequalify with us today to get a sense of what we can may be able to do for you.
I just want to thank you very much for your work to help us refinance our loans. I know you had to do so much work for us and we really appreciate it. If I know anyone who wants to buy a home or refinance I will do my best to refer you to them. Again, thank you very much.
This company out did themselves in my expectations. They were not pushy; they waited on me and kept contact with me even when I wasn’t sure if I was going to be able to refinance. I had a wonderful experience and highly recommend them for your next mortgage needs!
My mother recently had a refinance with HomePromise. The process was easy for her (and I) to follow. The loan representative was very helpful and responsive for the entire process and explained everything. I would definitely recommend this company.
I am a Veteran and they helped me understand the best options with my VA loan. They were great all through the process. I will definitely be telling others about Home Promise.
“I just want to thank you very much for your work to help us refinance our loans. I know you had to do so much work for us and we really appreciate it. If I know anyone who wants to buy a home or refinance I will do my best to refer you to them. Again, thank you very much.”
“My mother recently had a refinance with HomePromise. The process was easy for her (and I) to follow. The loan representative, Chris Gaus was very helpful and responsive for the entire process and explained everything. I would definitely recommend this company.”