I don’t know where you are as you read this, but right here, it’s HOT. The only solution for a hot summer is a pool, and with social distancing in place, having your own pool is a game-changer. That’s why a cash-out refinance this summer to put in a pool is the best choice you can make if you have equity in your home.
A cash-out refinance takes the equity that you have built in your home by making payments and the home’s value increasing, and lets you take out a new loan against it. You can then take this low-interest money to do anything. Options include paying off credit cards, making large home repairs, and adding new improvements to your home. There is no limit to what you can spend your money on.
With interest rates as low as they have been in years, it’s the perfect time to use that hard-earned cash in your home to turn your home into the neighborhood hotspot with a brand new pool. You’ll be the envy of your block as you swim in your new pool, and you won’t pay as much in interest as you would if you put the project on credit or a loan.
A cash-out refinance is a great way to both refinance your mortgage and borrow money. There are some caveats though. You want to make sure to keep at least 20% equity in your home for starters. If your home is worth $250,000 and you still owe $150,000, you have $100,000 in home equity, or 40 percent of the value of the home. That leaves you at $50,000 that you can borrow before you get back below that 20% mark and have to include PMI (Private Mortgage Insurance) in the equation.
You’d take out a new loan for $200,000 (the $150,000 that you owe plus $50,000) and at closing, you’d get a check for $50,000 at the close, not including the closing costs.
When market rates have dropped, as they likely have since you bought the home, while your home has risen in value, you can take out more money from your home.
If you use the funds to buy, build or improve a home, you can deduct mortgage interest paid on loan principle up to $1 million for a couple. The best part? When you take out a cash-out refinance from us, you can skip two full months of mortgage payments!
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, and Nashville at (615) 810-8555. You can always apply online with our 5-Minute Loan Approval at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?