Cash Out Refinancing
Simply put, cash-out refinancing is a way to replace your current mortgage with a new loan that:
- Pays off the balance of your existing mortgage.
- Uses the equity you have built on your home for additional cash to spend on other purchases.
Benefits
- Debt Consolidation: Use the extra cash to pay off debt from a high-interest credit card or student loans.
- Home Improvements: Make your home more appealing to future buyers by adding value.
- Cash in the Bank: Emergency funds give you stability and peace of mind.
- Tax Deductions*: If you’re using the money from a cash-out refinance to buy, build, or considerably improve your home, a mortgage interest deduction may be available.
*Supreme Lending is not a licensed CPA or Tax consultant and therefore, cannot determine if your mortgage interest will be eligible as a tax deduction per IRS code. You are advised to contact a tax professional. This in no way implies you are guaranteed a tax credit.
