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🏡 Cash-Out Refinance: Turn Your Home Equity Into Cash

A cash-out refinance lets you replace your existing mortgage with a new, larger loan — allowing you to take the difference in cash. It’s one of the most efficient ways to access your home equity for home improvements, debt consolidation, or major expenses.

How It Works (Example)

Suppose your home is valued at $250,000 and your current mortgage balance is $100,000. You’d like to borrow $50,000 for renovations or debt payoff.

Your new mortgage pays off the old one and provides you with $50,000 in cash at closing.

Cash-Out vs. Rate-and-Term Refinance

A rate-and-term refinance simply replaces your current loan with a new one at a lower rate or shorter term — the balance stays nearly the same. A cash-out refinance, however, increases your loan amount to include the equity you’re borrowing. Because the loan amount and risk are higher, interest rates are typically slightly higher than rate-and-term refinancing.

Why Consider a Cash-Out Refinance?

✅ Lower cost of funds — Mortgage rates are usually much lower than credit-card or personal-loan rates.
✅ Flexible use of funds — Remodel your home, consolidate debts, or invest.
✅ Single payment — Combine multiple debts into one manageable mortgage payment.
✅ Potential tax advantages — Interest may be deductible if funds are used for home improvement (consult your tax advisor).

How Much Cash Can You Get?

The amount you can cash out depends on your home’s appraised value, your loan-to-value (LTV) ratio, and your credit profile. Most lenders allow borrowing up to 80% of your home’s value (sometimes higher for qualified borrowers).

Example:
If your home appraises at $400,000, you may be eligible for up to $320,000 total financing. Subtract your current balance, and the rest is available as cash out.

📞 Ready to See How Much You Can Qualify For?

Find out how much equity you can tap today. Fill out this short form, Click Here and I’ll personally review your scenario and contact you with options.

📧 info@hbradosti.com
📞 (703) 843-3969

Refinancing your mortgage means replacing your current home loan with a new one—usually to secure a better interest rate, adjust your loan term, or access home equity. Because a refinance involves new closing costs and a new rate, it should always provide a clear Net Tangible Benefit — a measurable financial advantage for the borrower.

💡 What Is a “Net Tangible Benefit”?

A refinance must make financial sense. Typical benefits include:

Each of these outcomes provides real, measurable savings or added flexibility — and that’s what lenders call a “Net Tangible Benefit.”

📈 Common Reasons to Refinance

⚖️ Should You Refinance Now?

If current mortgage rates are lower than your existing rate or you’ve gained equity in your home, refinancing may save you thousands over time. For example, lowering your rate by just 1% on a $400,000 loan could reduce monthly payments by roughly $250 — adding up to more than $3,000 per year in savings.

🧾 What to Expect

Refinancing requires a new loan application, credit check, and closing — but the process is usually faster than your original purchase loan. Today’s digital mortgage process makes documentation simple and quick to complete online.

📞 Find Out If Refinancing Makes Sense for You

Curious whether refinancing your mortgage would save you money or provide a tangible benefit? Fill out a quick form, Click Here and we’ll review your numbers to help you decide.

📧 info@hbradosti.com
📞 (703) 843-3969