How Cash-Out Refinancing Works
This option works by refinancing your mortgage for more than you currently owe. The difference left over is the amount you can use for your own purposes. For example, if you still owed $80,000 on a $150,000 house, and you wanted to get some extra spending money to deal with some unexpected costs, you could refinance the mortgage for $100,000 and keep that extra $20K for yourself.
Just because you can get some extra money out of your house, it doesn’t necessarily mean you should. If you speak with one of our qualified consultants we can help you determine whether or not this is the best option for you.
There are a few options that can change your monthly payments, depending on your situation and final choices. Depending on your situation, you could refinance the total amount (the remaining mortgage plus the cash amount), or you might consider only refinancing the mortgage and taking the rest as a home equity loan.
It’s also important to remember that if you borrow more than 80% of your home’s value, you will have to pay private mortgage insurance. If this is the case, you could end up paying more than you realize, so be sure to look at all your options.
At First Savings Bank we can connect you with the professional who will work with you through this entire process and help you make the best possible financial decisions. Simply fill out the online form or contact us today to learn more.