Maybe you’ve had your heart set on a chef’s kitchen; or your teenage daughter’s been badgering you about adding a second bathroom so she doesn’t have to share with her “annoying little sister”; or maybe your hubby wants to renovate the basement so that he can have the man cave of his dreams?
No matter which of these scenarios resonate with you, you’ll have to find the resources to fund your remodeling project. If you’re like many American’s that have been struggling just to make ends meet in today’s economy, having the cash for such a large project upfront simply may not be possible.
However, you do have options. In fact, there are a number of convenient, flexible financing programs available that have been designed to meet the needs of many homeowners. Just one such program is a cash-out refinance loan.
A cash-out refinance loan allows your refinance your existing mortgage in order to “tap” into your home’s equity. In this type of program, you replace one mortgage for a larger one. This paves the way for you to remodel your home.
Depending on which refinance loan program you choose, and who your lender is, you may also be able to use this extra money to pay for your daughter’s college tuition, make energy improvements or purchase an investment property.
Best of all, with interest rates remaining at today’s incredibly low interest rates, cash-out refinancing can provide many benefits including the opportunity to pay a lower monthly payment – regardless of the fact that the loan may be larger.
If you are considering a cash-out refinance loan, then you should carefully determine whether or not your plans for the money will be a worthwhile investment as your home is probably your most prized financial possession.
While most remodeling projects will result in an increase in your home’s property value should you ever decide to sell, other expenditures such as taking a vacation may not be worth paying for – at least not with your home’s equity.
Before determining whether or not this type of refinance program makes sense for your specific financial situation, you should crunch the numbers to ensure you’ll be able to afford the extra expense for the next 15 to 30 years.
Have you refinanced your home for the purpose of refinancing? Please share your experience in the comments section below.
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23150 N Pima Rd
Scottsdale, AZ 85255
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