The Mortgage Insider - Home Financing with Contemporary Mortgage

Tips on how to tap into your home's value

January 24th, 2022 11:55 AM by Holly Ecimovic

Do you need to update your home space, but you can't really afford to buy a new home right now? Perhaps you need to make home renovations, like a bigger office, or add on to your home -- one option may be for you to tap into the equity you have in your home, so you can take cash out to renovate.

You could do a cash-out refinance. It's a type of mortgage that will monetize the equity you have in your home, according to experts. According to an article from Consumer Reports, interest on these types of mortgages are typically lower than on home equity loans.

A cash-out refinance will replace your mortgage with a new one for more than you presently owe, with the difference being paid to you in cash. This will certainly benefit you if you need to make your home renovations, improvements, or even if you want to pay off high interest credit card debt.

According to an article from Consumer Reports, in the second quarter of 2021, the average homeowner gained about $51,500 in equity. Many experts recommend that you use the money you extract from a cash-out refinance very carefully. What does that mean? It means using the money to pay for things like paying off debt, making renovations to increase your home's value, or putting it towards your retirement savings.

One additional benefit of doing a cash-out refinance is that you might be able to lower your interest rate if you bought your home when mortgage rates were much higher.

Are you looking to do a cash-out refinance? Call us today to discuss your options. 407-834-3377.

You can also fill out a no-obligation application for a free prequalification, here:

Posted by Holly Ecimovic on January 24th, 2022 11:55 AM


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498 Palm Springs Dr Suite 220
Altamonte Springs, FL 32701