Refinancing of Residential Real Estate in the Greater Philadelphia Region
Putting the Equity In Your Home To Work For You
Otherwise known as a "Cash-Out Refinance"
This type of refinance makes sense if you:
- Want to make home improvements.
- Have credit cards that could be paid off, or effectively moved to a much lower interest rate.
- Feel that's it time to look at some investment strategies.
In this type of transaction, the terms of the new loan will be dependent on the appraised
value of your house. That will determine how much cash you can obtain over and above what
you currently owe on your mortgage.
Let's say that you owe $100,000 on your current mortgage, which is at a rate
of 8.00%, and the appraised value of your house is $200,000. You are now
seeking a $120,000 loan at 6.75%. A cash-out refinance may help you in two
ways:
- You can put $20,000 towards home improvements, thus adding more value to your home.
- You will have a lower interest rate, and lower monthly payment, creating more savings.
How Do You Take Advantage of this Limited Window of Opportunity?
To Get Started, Choose the Type of Program You Have:
Other Ways to Save Money By Refinancing Your Mortgage
Lowering the Monthly Payment On Your Mortgage
Reducing the Amount of Time It Takes To Pay Off Your Loan
