Cash In Your Hands With Megastar Financial

A lot of homeowners may choose to refinance their current mortgage into a conventional mortgage and remove their mortgage insurance from their current monthly payment as soon as possible. In order to do so, the homeowner must have enough equity in their home. Refinancing to a conventional loan will leave more money in your pocket every month.

Refinancing Explained

A cash-out refinancing option is a way for you to refinance your current mortgage and cash-out, or borrow additional funds, at the same time. Your new loan balance will be higher than your old mortgage by the amount of money you borrow. Check out this video to learn more.

Putting Your Money
To Work For You

When you do a cash-out refinance, it will replace your current mortgage with a new loan that’s for more than your previous home loan. The difference in the loan amount will come to you in cash and you’re able to spend that money on debt consolidation, home improvements, or any other financial needs. In order to do this, you must have enough equity in your home to cover the difference between the previous mortgage and your new mortgage.

Benefits Of
a Cash-Out Refinance.

There are multiple benefits to taking out a cash-out refinance loan.

  • Interest rates are lower: Taking out a cash-out refinance typically offers lower interest rates than doing a home equity loan or a home equity line of credit, or HELOC. You might also get a lower interest rate than you currently have if mortgage rates were higher at the time of original signing. For example, if you purchased your home in 2002 when the average interest rate on a mortgage was around 8%. Now, this amount can be closer to 5%.
  • Pay off debt: Use the money you receive from a cash-out refinance for debt consolidation. You can pay off any high-interest credit cards or small personal loans you have, which may save you hundreds or thousands of dollars in interest.
  • Build your credit score: If you use the money for debt consolidation when you do a cash-out refinance, you can lower your credit utilization. This may significantly boost your credit score.
  • Receive tax deductions: Money from your refinance that is used to improve your home may allow you to utilize mortgage interest deduction when filing your taxes.

If you’re considering refinancing your current home loan to a conventional mortgage, consider giving our office a call. The experts of refinance at Megastar Financial in Redding, California can help you determine which type of refinancing will best suit your current loan. Give our office a call at 530-999-9000 to get started.