South Florida Mortgage Broker Shares About Refinancing Your Mortgage
We are living in some crazy times right now. With coronavirus, you may be facing a wide range of financial challenges. Maybe you had to get a test for the virus. Perhaps you or another family member got sick, and you now have significant medical bills to pay. Maybe you have had to take weeks out of work. Maybe you have even been laid off.
If you find yourself with unexpected bills or a loss of income, you may find yourself uncertain where to turn. Should you put the extra expenses on your credit card? Should you take out a personal loan?
One alternative to these high-interest options is to instead consider a cash-out refinance on your home loan.
What is a Cash-Out Refinance?
When you get a cash-out refinance, you take out a new mortgage which is larger than what you currently owe on your home.
The difference between what you borrow and what you owe is paid to you as a lump sum of cash.
This is an ideal time to apply for a cash-out refinance for a couple of reasons.
First, you can get the money you need right away. Secondly, mortgage rates have hit rock-bottom recently, and you can take advantage and save money on your home loan going forward.
What Can You Do with a Cash-Out Refinance?
What is awesome about a cash-out refinance is that you are pretty much unlimited in how you spend the money. Here are just a few ways that a cash-out refinance might help you now:
- Have a larger safety net. You do not have to spend the money from a cash-out refi at all if you don’t want to. You can just add it to your savings, increasing the liquidity of your finances. That way if an emergency does come up, you will be ready for it.
- Cover unexpected medical bills. If you need to pay for an expensive test or emergency care, you can use a cash-out refinance to help cover the costs.
- Pay other unexpected emergency expenses. Life goes on even during an outbreak, and you never know what can go wrong. If your car has broken down or a tree has crashed through your roof, the money from a cash-out refi can help you pay for the damage.
- Pay bills while waiting to replace lost income. If you are in an industry where you have been ordered not to report to work for the next few weeks, the money from a cash-out refinance can help you stay afloat.
- Take classes to help you get a new job and/or pay for relocation. If you have lost your job permanently, a cash-out refinance can help you whether your expenses and make changes you need to in order to start up with a new job.
Cash-Out Refinance Benefits
Here are the advantages of a cash-out refinance:
- Freedom in how you use your funds. As just discussed, it is completely in your hands how you use your money. Whatever your need is right now, the payout from the refinance can help you meet it. You also receive all the money upfront, so even if you have a large bill due, you may be able to cover it with the cash from the refi.
- Reduce your mortgage rate. Now is the time to lock in today’s low rates. With so much volatility, we don’t know what the future will bring. But you could save thousands of dollars over the years ahead by locking in low rates while they are here.
- Consolidate high-interest debt. If you are losing money juggling high-interest debts, you can consolidate them into your new mortgage and save even more money.
- Revisit and improve other mortgage terms. If there is anything else you would like to adjust regarding your mortgage, you can do so now. You can make it longer or shorter, or you can switch between a fixed or adjustable rate. You can even change the type of mortgage if you want.
Just keep in mind that refinancing entails paying closing costs as well as interest on the new loan. You will need to figure out whether the money you can save outpaces the cost to refinance. That is something they can help you figure out during your consultation.
Get the Cash You Need Now with a Cash-Out Refinance
If you need extra income during these challenging times, Premier Lending Corp can help with a mortgage refinance. If you are ready to find out the ways in which a cash-out refinance can help you save money and cover unexpected expenses, call today at 954-840-8811. They look forward to discussing your needs during your consultation and helping you get the cash you need.