Home values are rising faster than they have in years and many homeowners are sitting on a pile of unused equity in their homes. According to CNBC, there are 42 million homeowners with mortgages, and they have a total of $5.5 trillion in equity available to them. This represents available home equity at an all-time high.
What does this mean? It means that millions of homeowners could be wasting the opportunity to get out of credit card purgatory with a cash out refinance.
Why would you choose a cash out refinance, instead of a HELOC, or a Home Equity Line of Credit? Because HELOC’s no longer have the benefit of tax-deductible interest under the new tax law. Under the old laws, you could deduct interest paid on home equity debt, up to $100,000.
For a conventional loan or refinance, you can still deduct interest paid on anywhere under $750,000 in debt. This alone makes a cash out refinance a better bet than a HELOC to help you use your equity to get yourself out of credit card debt, make home improvements, or put cash away for emergencies. If you are planning to itemize, a cash out refinance makes much more sense.
Mortgage rates are even lower than they were last year at this time, and home values are rising quickly with market demand far outpacing housing inventory. It’s the ideal time to do a cash out refinance.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656. You can always apply online 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?