We offer the best service around, like face to face consultation, whether that be in your home or our office, We can ease you through the paperwork involved with your new mortgage and make the process an easy one for you.
Do you want to “Spruce your home up?” Here is a loan option that could help you with your winter renovation projects – Cash-out refinance. Mortgage Market Corp. offers a cash-out refinance; the homeowner’s current mortgage is replaced with a new loan that has a higher loan amount. The difference in what is currently owed and the new loan amount is then given to the homeowner in cash. This can be a great option when deciding to update your home, but you are not limited in what you can use your extra cash on. This option is more versatile so you are able to use your funds where and when you need them.
How a cash-out refinance works
As stated above, a cash-out refinance allows you to refinance your mortgage for more than you currently owe, then pocket the difference. This results in an entirely new first mortgage. For example, if you still owe $75,000 on a $200,000 loan and you want to do $25,000 in renovations, you can refinance your loan for $100,000. Ideally, this will result in a better rate for your initial $75,000 loan and $25,000 in your pocket to complete your renovations. Since this is an entirely new mortgage, there would be closing costs involved as well. Mortgage Market Corp. mortgage specialist can assist in explaining these closing costs, in detail, and work with you so you understand the program.
Getting additional funds to complete a renovation project is not the only reason to get a cash-out refinance. If you can refinance at a lower interest rate, you can use the cash you get back to pay off high interest debt (like credit cards and student loans). You’ll still owe the original debt amount, but you’re now making payments at the lower interest rate, which can save you thousands of dollars in the long term. Mortgage interest payments are also tax deductible, so rather than using credit to complete your home improvement projects, you could get more money back on your tax returns.
Some other ways you can use your extra cash include:
paying college tuition
purchasing a second property
making an investment
creating an emergency fund.
Keep in mind, a cash-out refinance does not come without risks. If housing values drop, taking out equity could result in you owing more on your home than it is worth. You are also at a higher risk of defaulting on your mortgage, which would ultimately lead to foreclosure on your home. Make sure that whatever you intend to use your cash for is a solid financial investment and will bring you more value in the long run. Consult your Local Mortgage Market Corp. loan officer if you have questions or would like to know more about the benefits and risks of a cash-out refinance.
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