Across the country, more than 14.5 million homes have become “equity rich” — meaning more than half of the home’s market value has been paid off. If your home is one of them, you could be sitting on a pile of money! Have you considered a cash-out refinance to put those funds to work for you?
What financial goals could a cash-out refi help you achieve? From paying off high-interest debt, remodeling your home, or paying for college to taking a well-deserved dream vacation, a cash-out refinance could help make those goals a reality.
So how much cash can you actually get with a home equity refinance? That depends on how much equity you have in your home — and a few other factors as well.
Your equity. The amount of equity in your home is determined by the difference between your home’s fair market value and how much you owe on your current mortgage. If your home appraises at $450,000 and you still owe $200,000 on your current mortgage, then your equity is $250,000.
Your finances. As for any loan, I’ll be looking at your credit score, finances, income, and debt levels when you apply for a cash-out refi. The numbers we come up with help determine how much we’ll be able to lend you, and at what interest rate.
Pro Tip: If you plan to consolidate and pay off other loans, your debt ratio will decrease, which may in turn allow you to get more cash out.
Your loan. The amount of cash you can get out of your home also depends on the loan-to-value (LTV) set by the home loan program you choose. We will take a look at the numbers to maximize your benefits and help you get the most out of your refinance.
Ready to put your equity to work for you? Let’s connect to discuss your options.
Source: ATTOM(TM) Data Solutions