Cash-Out or Cash Back Refinance
This plan allows you to refinance your mortgage for more than you currently owe. The difference and the equity is converted into cash for the homeowner.
Is refinancing right for you?
Here are the most common reasons for refinancing:
- You have a fixed-rate mortgage with a high interest rate, and are looking to get a lower interest rate
- You have an adjustable rate mortgage (ARM) and are looking to get a fixed rate
- You have two mortgages and would like to consolidate them into one
- You have a long-term loan and would like a shorter-term loan so you can pay it off and build equity more quickly
- You have a short-term loan and would like a longer-term loan so as to reduce your monthly payments
- You want to move from an interest-only mortgage to a loan that pays down the principal
- You want some extra cash to make a purchase or to pay off other debt
Benefits of refinancing
Refinancing makes sense if you fit into one of the categories listed above. If you’re curious about your specific scenario, reach out today and we’ll take a look!
Four common refinancing options:
Lower Fixed-Rate Loan
If you currently have a high fixed-rate mortgage and the rates have dropped due to market conditions, then you may want to refinance to a low fixed-rate loan. Also, if you have an ARM, you might consider this option in order to get the security of a fixed rate. Even if your adjustable rate is low now, it is not guaranteed to remain that way; but if you get a low fixed-rate loan, then you lock that low rate in for the life of the loan. This option is a good choice if you are not planning on moving within the next five years.
Shorter-Term Loan
If your main goal is to quickly build up equity and to pay off your mortgage sooner, then the shorter-term loan is probably your best choice. A lot of times, if you refinance to this type of loan, your monthly payments will be higher, but you will pay substantially less interest and your mortgage will be paid off sooner. Also, you would benefit from a larger tax deduction on interest if you move from a 30-year fixed to a 15-year fixed loan. There are some cases, however, in which you may be able to refinance to a shorter-term loan without raising your monthly payment -if you’ve had your current mortgage for enough years.
Longer-Term Loan
If your current monthly payments are higher than is comfortable for your financial situation, then you might want to consider refinancing to a longer-term loan. This will result in a decrease in your monthly payments, since you will have more time to repay the loan. Examining your current mortgage and knowing how you would like to improve it are the first steps you need to take when starting the refinancing process. Once you know this, you can choose the option that will best help you achieve your goals.
Tyler Blevins
Founder  //  NMLS #1771838
My mission is simple: Help you and your family create generational wealth through real estate.
Welcome to Gold Leaf Lending! I’m Tyler Blevins, an Air Force veteran turned mortgage lender! With a profound dedication to attention to detail and clear communication, I make it my mission to skillfully guide you through the most significant purchase of your life – your home.
My journey from the Air Force to the world of mortgages has instilled in me a strong sense of discipline, attention to detail, and unwavering integrity. These qualities drive my passion for delivering this seamless and stress-free experience to every client I have the privilege of assisting.
At Gold Leaf Lending, we understand that your home is more than just a transaction; it’s the foundation of your dreams and memories. I’m here not only to secure the best mortgage rates and terms for you as an independent mortgage broker, but also to be your trusted partner throughout your homeownership journey from your first home to the last. Whether you’re a first-time buyer, looking to refinance, or exploring investment opportunities, I’m committed to providing expert guidance tailored to your unique needs.
Thank you for choosing Gold Leaf Lending as your trusted mortgage partner. I look forward to helping you on your path to homeownership!
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