With mortgage refinance rates at records lows, you likely have neighbors or family members that have rushed to save money by reducing their finance rate with their mortgage company. Today we are going to discuss two variants of the traditional refinancing option.
Homeowners may find themselves in a situation where they need access to funds for a home renovation project or for other financial needs. If you have equity in your home, a Cash-out Refinance is a method you might consider that allows you to both refinance your home and borrow money at the same time. A cash-out finance replaces your existing mortgage with a new loan with a higher balance, sometimes with more favorable terms. The difference goes to you in cash so you can perform upgrades to your home, consolidate debt, or for other financial reasons. A cash-out refinance is not to be confused with a home equity line of credit (HELOC) in which you borrow money using your home equity as collateral.
There may a situation in which you want or need to pay cash for a house. Perhaps you want to buy a home that lenders are leery of financing due to its state or repair. Or you may be in a situation where you need to outbid other buyers. In these cases, and others, you might decide to pay cash for a property. Using Delayed Financing Cash-out Refinance, a buyer purchases a home with cash up front, then immediately or soon thereafter obtains a cash-out refinance to mortgage the property, which returns a significant portion of your money to you. If the home you wish to buy needs major work in order to pass home inspection or if it will not qualify for financing, you might consider paying cash for the home, renovating it, and then request a cash-out refinance to get back funds you put into the project. In either case, you regain financial liquidity and can proceed with your investment goals.
Do you have any questions about a cash-out refinancing? RLG has the tools and experience to guide you with your personal and investment properties. Call us today to learn more and experience firsthand the dedicated, personalized customer service and undivided attention that RLG has to offer!