With many Americans having more equity in their homes than ever, it’s a great time to consider a Cash-Out Refinance.
Here is why a Cash-Out Refinance may be beneficial for you!
What Is a Cash-Out Refinance?
When you execute a cash-out refinance with AdvantageFirst Lending, you are replacing your current mortgage with a larger one in order to gain access to the equity built up in your home. The cash from the equity built up in your home can be used for numerous purposes with home improvement being an extremely popular option.
How Does A Cash-Out Refinance Work?
When you are cash-out refinancing your home, it is very similar to a rate and term transaction where you get a new mortgage that replaces your current one. Oftentimes, the new mortgage includes a lower interest rate and perhaps a decreased loan term. When you do a cash-out refinance with AdvantageFirst Lending instead of a general rate & term, you can likely lower your interest rate and take out the equity in your home all at the same time.
How Much Equity Can You Take Out?
Lenders use a typical rule of thumb to let borrowers take out up to 80% of the value of their homes. While this is the general rule, it is all dependent on certain criteria like a borrower’s credit score, type of home, and type of mortgage. Taking out equity in your home can be used to pay for not only home renovations but also other debts that have much larger interest rates attached to them.
About AdvantageFirst Lending
AdvantageFirst Lending is the preferred lender when it comes to Cash-Out Refinancing options and saving you money on your monthly mortgage payment. Customer support is key in any home financing transaction, and our loan officers here at AFL provide the best in the business. For more information visit our website and follow us on Facebook and Instagram. Also, be sure to check out our reviews on Zillow.