What is a Cash Out Refinance?
Do you have high-interest rate bills to pay? Have you been meaning to renovate that 1980's kitchen but haven't had the extra cash on hand to start the demolition? If you have built up equity in your home and would like to use the extra value to help give you cash on hand, a cash out refinance loan may be the perfect option for you!
Whether you bought your home before your neighborhood was the best place to live or you are slowly recovering from the depressed housing market and now owe less on your home than your loan is worth, San Diego Funding wants to help you take advantage of the equity you have built. We've helped hundreds of homeowners in San Diego, Chula Vista, Point Loma and Bonita refinance their homes.
Items to Consider with Cash Out Refinance San Diego
Because a cash out refinance is essentially borrowing against the equity of your home, there are a few more things to consider than there would be with a rate and term refinance. First, you will need to decide how much money you absolutely need to take out. If you can leave some of the equity in the home, this is the best route because it will help keep the monthly payment lower and may help keep the rate lower as well. Another thing to keep in mind is making sure that the cash will be used as something to help protect and improve your future. Using the money to renovate your house, pay off high-interest loans or retirement investments are always good ways to invest your money.
After you've determined how much you need, you will want to assess the market value of your house. This will help determine how much money you can pull out, so it is an important number to know. The equity amount is found by subtracting the amount you owe on your loan from the appraised value of your home. Remember that the amount of equity will not be the final amount of cash you end up with as several lenders do not allow 100% cash out equity loans.
The next step will be to decide whether the changes will affect your ability to afford the monthly payment as this is likely to go up since you are borrowing against your home.
Whether you are at step one trying to figure out if this is the right step for you or you are ready to move forward with an experienced, knowledgeable lender, let us help guide you through the process. Fill out our quick online form or call us today 619-498-0000 and we can help you determine whether a cash out refinance is right for you.
