Top Reasons for Doing a Cash-Out Refinance
1. Home improvement or repairs. Add to the value and your enjoyment of your home!
2. Debt Consolidation. Consolidate debts that have higher rates of interest. Using a cash-out refinance as a debt consolidation loan can help you reduce your overall monthly costs.
3. Education. As the cost of education continues to climb, many parents are turning to cash out refinance loan to help cover these expenses.
4. Diversify investments. Mortgage rates have been so low that financial advisors may recommend using some of the equity in your home to diversify your investment portfolio including the purchase of an investment property.
How much cash out can I get?
It depends upon the program and other variables including the type of property and credit profile. A borrower may be able to borrow between 85- 95% of the home’s value.