What is Cash Out Refinancing?
Cash-out refinancing involves refinancing your current mortgage for a larger loan amount, allowing you to access a portion of your property equity as cash (this can also be an ‘internal refinance’. The amount you cash out depends on how much equity you’ve accumulated in your property.
These surplus funds can be used for various purposes, such as funding investments, major purchases, home improvements, debt consolidation, holidays, and more.
Benefits of Cash Out Refinancing
Investing Made Easier: Use your equity to invest in property or diversify into stocks without the need to save a large deposit.
Home Renovations: Tap into your equity to fund renovations that could increase the value of your property.
Debt Consolidation: Combine higher-interest debts into your mortgage, potentially lowering your overall interest payments.
How does it work?
Calculate Your Equity: Contact a mortgage broker to determine how much equity you have available.
Refinance for a Larger Loan: Apply for a new mortgage with a higher loan amount than your current one. The lender will provide the surplus funds in cash.
Receive the surplus funds: Once the refinance is complete, the lender transfers the additional funds, giving you the freedom to use them as needed.
Different lenders have varying policies and rules regarding cash-out refinancing, so it’s crucial to understand the specific requirements for each. As a mortgage broker, I can help you navigate the options, provide tailored advice, and ensure you find the best solution for your financial situation.
Ready to explore your refinancing options? Contact me today to see how you can unlock the potential of your property equity!
Mobile: 0401 225 713
Email: lmckean@lbklending.com.au
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