What Is It?
A cash-out refinance replaces your current mortgage with another loan that pays off your current mortgage balance and allows you to use the equity in your home to provide additional funds for other purposes. Depending on the circumstances, this can be a valuable alternative to a home equity loan.
To give you an example, say you have $60,000 left in your mortgage and your payment history is in great shape. You may have heard of or looked at recent mortgage rates that are better than what you signed for years ago, so you’re considering a refinance. Then you decide you want another $20,000 to add a small room to your home, but you don’t know where you’re going to get the money. With a cash-out refinance you can refinance your mortgage for $80,000 to get the better rate for your $60,000 balance and an extra $20,000 for the new room. All you have to do is meet all the requirements for the refinance.
In some cases, a cash-out refinance is the better choice; in others, it’s going to be the home equity loan. Before choosing, make sure you consult with one of CBM Mortgage’s mortgage experts, who can walk you through your options and help you make the decision that’s right for your needs.
A cash-out refinance can help you meet your financial needs.
Maybe you’re all set to refinance and you need extra funds, but not for home improvement. If you’ve never refinanced before, you may believe that home equity is for home improvement only. While it’s true that a cash-out refinance is often used for home improvement projects because it’s taking money out of a home to increase the home’s value, your home’s equity can actually be used for anything you need. Because it’s the money in your home, which means you get to choose how that equity is used. Take advantage of it!
So if you’re considering a refinance, especially because of financial concerns, know that your reason for taking equity from your home can be any of the following or more:
- Consolidate a first and second lien against your home into one mortgage payment
- Pay for college tuition
- Pay off debt
- Purchase a second home or investment property
Interested? Here are our most popular refinance options:
FHA loan – Refinance up to 85% of your home’s value.
30-year fixed-rate loan – Traditional mortgage with fixed payments (80% loan to value).
VA loan – Refinance up to 100% of your home’s value with the VA loan if you’re a veteran, military member, or spouse.
Contact a mortgage specialist with CBM Mortgage today to learn more about these exciting loan options and to find out which cash-out refinance loan is best for you and your family!
We can work with you to get preapproved online, over the phone, or face-to-face.
We welcome you to apply for a mortgage with us for your next home purchase or refinance! A locally owned business, CBM has convenient locations in Winchester, Va.; Strasburg, Va.; Charlottesville, VA; Virginia Beach, VA; Alexandria,VA; and Front Royal, Va.