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There's more than one reason to refinance.
Cash-out lets you use equity without selling.
There's more than one reason to refinance.
Lowering your rate is the obvious one, but it's not the most common anymore. People refinance to pull cash out, drop mortgage insurance, shorten a 30-year to a 15, get an ex-spouse off the loan, or move off an adjustable rate before it adjusts.
The break-even is the whole question.
Cash-out lets you use equity without selling.
There's more than one reason to refinance.
Refinancing costs money — usually 2% to 5% of the loan amount. Divide that cost by your monthly savings and you get the number of months it takes to come out ahead. If you're moving before then, don't do it.
Cash-out lets you use equity without selling.
Cash-out lets you use equity without selling.
Cash-out lets you use equity without selling.
Most programs let you borrow up to 80% of your home's value and take the difference in cash. It's most often used for renovations, paying off higher-interest debt, or funding an investment property down payment. It's still a mortgage, so the trade-off is real.
You may be able to drop mortgage insurance.
You may be able to drop mortgage insurance.
Cash-out lets you use equity without selling.
If your home has appreciated or you've paid down the balance, you may have crossed 20% equity without noticing. On an FHA loan, mortgage insurance often can't be removed at all — refinancing to a conventional loan is the only way off it.
The process is shorter than a purchase.
You may be able to drop mortgage insurance.
The process is shorter than a purchase.
No agent, no seller, no offer deadline. We verify income and credit, order an appraisal, and close. Most of my refinances run about 20 days, and there's no one else's timeline to work around.