Monday, February 6, 2017 - Article by: Leah TenBieg - Prospect Financial Group, Inc. -
Student loans, credit card debt from the holidays, and housing remodel expenses can all be taken care of this year by utilizing a cash-out refinance. Now that we are officially well into the new year, it would be nice to have some of these things taken care of. Read below to see how you can benefit from a cash-out refinance, and see if one is right for your current situation.
Defining a cash-out refinanceWhile comparable to a regular refinance, a cash-out refinance has the unique ability to benefit you by allowing you to get the extra cash that is the difference between your existing mortgage loan and the new loan that you obtain. In short, a cash-out refinance replaces your first mortgage while you walk away with extra cash to spend how you would like.
Why get a cash-out refinance?To start, this particular type of refinance allows you to spend your money on whatever you please. It's popular amongst people who are looking to remodel their homes, pay off student loans, or even pay off all of their lingering credit card debt. However, a cash-out refinance can also benefit those who are looking to go on a costly vacation or those looking to make a big purchase on a car or second property. While starting a new business can be a lot to handle, a cash-out refinance could help relieve some stress by allowing you to have enough money to get your business on it's "feet".
Utilizing a cash-out refinance would be a great way to start 2017 off on the right financial foot. These refinances have the ability to benefit you greatly, but it's always smart to keep in mind that while you do have extra money to spend, you do in fact have a new mortgage to pay off.
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