Cash Out Refinances Are Surging In Popularity
The popularity of a cash out refinance is fueled by rising home prices combined with lower mortgage rates and the need for ready cash.
What is a cash-out refinance?
A cash out refinance enables homeowners to trade the equity in their homes for a lump sum of cash. Homeowners pay off their old mortgage with a new one, and keep the extra cash that’s left over. This can be a really great option because it gives homeowners all of the benefits from a standard refinance, including a lower rate and potentially other beneficial modifications. With the cash out refinance, that cash paid out can be used to pay down other high rate debt or possibly fund a large purchase. This can be particularly beneficial when rates are low, or in times of crisis, such as Covid-19, when lower payments and some extra cash can be very helpful.
Are you looking for more information regarding a cash out refinance? At ICD Mortgage our loan officers will work with you to assess the previous loan terms, the balance needed to pay off the previous loan, and your credit profile. We will then make an offer based on an underwriting analysis. You will get a new loan that pays of your previous one and locks you into a new monthly installment plan for the future.