Cash Out Refinance
If you have owned your home for a period of time long enough to
obtain some equity through your monthly mortgage payments and
appreciation, you may be considering borrowing off the equity
you have established in your home.
This can be known as cash out refinancing, where you basically
refinance your home and get some cash back in the way of a lump
sum at the closing table.
Borrowing off of the equity in your home is done by many people
and used for many different things.
Such as, home improvement projects, new cars, college expenses,
family vacations, etc.
Of course, just like everything else in life, the process isn't
one of the easiest of things to do in the world. But if you take
your time, do your homework, and find the right lender and loan
officer, the task in front of you will be a lot less painful.
The mortgage industry is a very competitive one, so be sure to
shop around and look for the deal that is best for you.
If you are not interested in doing the shopping around yourself,
consider finding a mortgage broker to do the shopping for you.
A mortgage broker is a person who works as a liaison between the
customer and the lender. It is the job of the mortgage broker to
shop lenders for the consumer to find the mortgage program that
best fits their needs and budget.
Allow for a few brokers to assess your situation, than base your
decision on the one that best fits your needs and budget.
Keep in mind, most cash out refinances are tax deductible, so be
sure to run it by your accountant at tax time.