• Cash Out Refinancing

     

    What it means & How it works

    Many homeowners spend hours dreaming about possible renovations to their homes, but feel they may never have the extra cash to make those perfect thoughts a reality. Others diligently pay their mortgage on time each month, but struggle with other sudden costs that creep up, like college tuitions or medical expenses. But the thing these situations have in common is that the option to solve those problems is right in the homeowner’s hands—whether they know it or not. With the help of Fairway Mortgage Company, it is completely possible for responsible individuals to get the cash they need when they need it for the things they care about most.

     

    How Can Fairway Mortgage Help with My Cash Out Refinance?

    The first step is determining if cash out refinancing is right for you. Unknown to many individuals who own homes, this method is a viable way to utilize mortgage equity when they need it. With this type of refinancing, the homeowner’s current mortgage is replaced with a totally new agreement worth more than they currently owe on their house, and the homeowners get the extra amount in cash.

    Fairway Mortgage Company is dedicated to their customers and can assist them through the process of deciding if this type of loan is right for their situation. Our skilled team knows that, while cash out refinancing is a great way to secure a fixed interest rate and free up useful funds, it may not be the right option for your family. Come chat with us and we’ll assist you in the decision, with honesty and our many years of experience informing our guidance.

    We here at Fairway Mortgage Company also know that families want the best rates on the market, so that’s why we offer competitive rates on all of our loan programs. Cash Out Refinancing is no exception. Additionally, we pride ourselves on customer involvement in all financial matters, so we take the time to educate our clients and get to know their specific needs and finances. Get the best possible outcome from your hard work and investment, and feel confident about your decision. You deserve nothing less.

     

    The Many Benefits of Cash Out Refinancing

    Fairway Mortgage Company has the experience and skill to help determine if cash out refinancing is right for your individual situation. Here are some of the main reasons our team many suggest cash out refinancing over other options.

     

    Freeing Up Cash for Home Improvement

    Likely the most significant benefit to cash out refinancing—and the reason most people opt to do it—is the ability to free up funds for other projects and investments. While it’s important to know what your plans are with the money from this type of refinancing, there are many great options that can make a drastic difference in your life and even help add value to your home.

    One of the most typical uses of these funds is home improvement. This is an incredible use of money because with smart updates and alterations to your house, the property value can increase substantially, benefitting homeowners immediately and as a long-term investment. This can range from any type of renovation—from updating basic fixtures and appliances to adding entirely new rooms to the home.

     

    Going Green and Saving Money

    An excellent use of cash out funds seen more recently is installing solar panels and other energy-saving technologies. Not only does this add value to the home, but it also helps the environment and saves homeowners tons of money on their energy use—sometimes eliminating electric bills entirely! Use the money from your cash out refinance to save yourself even more money in the long run.

     

    Lowering Your Interest Rate

    Another great perk of choosing a cash out refinance is that homeowners can negotiate a lower interest rate in the process. For example, interest rates today are much lower than they were about 15 years ago when rates averaged 9%. If an individual bought their home when mortgage rates were substantially higher, their new mortgage can potentially have a much lower interest rate. That saves you money long-term, while still freeing up the money you need immediately.

     

    Strengthening Credit

    If you haven’t had the best of luck with credit cards in your past and want to catch up on large debts, a cash out refinance can help solve this issue. While it’s important to make sure your credit habits stay strong once you pay off debts, having the funds to wipe the slate clean can make a world of difference. Use the freed-up money to consolidate debt from high interest credit cards. This can save you large amounts of money in interest payments and improve your credit score by reshaping your credit utilization ratio.

     

    Taking Advantage of Tax Deductible

    Unlike that of credit card payments, interest paid on mortgages is tax deductible. When you choose to use the funds from cash out refinancing to pay off other debts, you are consolidating the money you owe in a smart way that can help secure a larger tax return come April.

     

    Is Cash Out Refinancing Right for You?

    It’s essential to have an idea of what you will do with the extra funds you secure. While it may be tempting to use the cash to buy that new car you’ve had your eye on or take your partner on a romantic getaway, it’s best to use the money in a way that enhances your financial situation and invests in your future. Cash out refinancing is an excellent option for many people, but—as with any financial decision—it’s of utmost importance to assess your financial situation and needs before jumping into the process. Fairway Mortgage Company is here for that exact reason.

    If you’re a homeowner who has been itching for more energy efficient technology or wants to consolidate debt and save big in the long run, Fairway Mortgage Company is ready to assist your cash out refinance and ensure you and your family achieve the life of your dreams now, while simultaneously setting you up for your future.