VA cash out refinance
With home values sky rocketing, now might be the time to cash out some of your home’s equity with a simple VA cash out refinance.
Ideally, over time, as a homeowner, your monthly payments will have accrued to create on of the greatest assets of homeownership– your home’s built-in equity. Equity rises in contingency with your property value and fluctuates depending on your home’s appraised value. Eventually, with enough staked home equity, you will essentially be able to act as your lender by leveraging that equity to make large-ticket purchases or consolidate your consumer and installment debts.
There are a few ways as a homeowner you can tap into your home’s built-in equity. A cash-out refinance is one of the options available to you. It allows you to take out a new home loan for more than the balance owed while refinancing into better rates and terms on your mortgage loan. This can be especially true if you are refinancing from a conventional loan into a VA loan. This is because a portion of your VA has a federal-backed guarantee decreasing your mortgage loan risk, making you eligible to receive better rates and terms on your loan. Essentially, a cash-out refinance is like replacing your original mortgage loan with a better mortgage loan while being able to take out cash to have on hand.
With a VA cash-out refinance, you can take out a new loan for up to 90 to 100% of the value of your home’s built-in equity depending on the criteria set by your lender. From college tuition to student loans to weddings to home renovations to making other investments, or paying off consumer debts– once that cash is in your hand, you get to decide how to use it to put yourself in a better position financially.
Use a cash-out calculator to determine the amount of cash from your home’s equity available for you to borrow. Furthermore, this tool will show you your new monthly mortgage payment after refinancing, helping you to decide whether or not a cash-out refinance fits into your personal financial goals.
There are many reasons why you may want to consider a cash-out refinance loan. Of course, choosing how to use your cash-out refinance will be unique to each individual’s financial situation and should be scrutinized accordingly:
Inputs for a cash-out calculator are based on the following categories: the price and equity of your home, your home’s mortgage structure, closing costs, and other inevitable costs related to homeownership.
We get it. Everything’s more expensive right now. But with homes appraising at record highs, now could be the time to tap into some of your home’s equity. Maybe it’s finally time to go electric.