Cash Out Refinance

As the value of your home increases over time, a cash-out refinance enables you to tap into the equity you have built with a new mortgage for an amount that is greater than what you currently owe. This new loan allows you to pay off your existing mortgage and use the extra money for any purpose you choose.

Unlike a home-equity loan, which is actually a second mortgage and lien on your property, a cash-out refinance mortgage replaces your existing loan with a new one.

Because mortgage interest is usually tax deductible, there is potential for tax savings. And you can use the cash realized from the cash-out refinance to pay off other, higher-cost debts like credit cards or other bank loans. The interest rate on your new loan will likely be different than the one in place on your existing mortgage so it is important to consider that new interest rate and how it will impact your monthly payment, the impact on your taxes and the length of the term before you make any decisions.

Contact a Ross Mortgage representative to see if a cash-out refinance mortgage is the right fit for you.