Let's say you have a home that's worth $150,000 and you owe $100,000 on the mortgage. That means you have $50,000 of equity in your home, which is like having $50,000 in a savings account. A cash-out refinance allows you to access that equity. For instance, if you need $10,000, you can refinance your mortgage so that you owe $110,000 and the lender then gives you $10,000 in cash at closing.
Since every homeowner's situation is different, your best option will depend on your specific circumstances. Quicken Loans has several mortgage options to choose from. When you compare cash-out refinance loans further, there are a few things you should consider in order to determine what's best for you:
- Speed
Need cash fast? Cash-out refinances can be done as quickly as two weeks. - Rate
A cash-out refinance loan typically has a lower rate than a home equity loan and can be done without taking out a second mortgage. - Term
Cash-out refinances lump all your payments into one low payment instead of having multiple payments due each month.
A Quicken Loans mortgage expert can help you learn more about a cash-out refinance loan. With your own personal mortgage expert to guide you, you'll have no trouble determining if this loan is right for you.
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