Refinancing has become an American way to get cash and save money. Another way to make a refinance quote work for you is to refinance for more than the balance remaining on your old mortgage loan -- in effect, tapping your home equity, or "cashing out," in mortgage speak. Thanks to favorable refinance rates, you may be able to do so without boosting your monthly outlay. For example, at 8.5%, the payment on a $200,000, 30-year fixed rate mortgage is $1,538. But at 5.5%, that same payment lets you borrow nearly $60,000 more. Get a free mortgage refinance quote for a fixed rate from the Mortgage Loan Outlet.
The best use for the extra cash is to pay off any higher rate loans you may have. Let's say that you are carrying a $15,000 car loan at 10% and making minimum payments on a $10,000 credit card balance at 17%. Your monthly payments on those debts would total $680. Then assume you refinanced your mortgage, taking out an additional $25,000 to pay off your car and credit card loans. Result: At 7.5%, your additional monthly mortgage payment would total only $175, so you would come out $505 ahead ($680-$175=$505).
Of course, all the extra cash needn't go for paying off debts. When the Menards swapped their ARM for a fixed rate last December, they also increased their mortgage load by $34,000, from $106,000 to $140,000. They used $3,000 of the proceeds to pay their refinancing costs and another $17,000 to pay off a 10% home equity loan, which had been costing them $250 a month. Then they spent the remaining $14,000 to build a garage for Roger's antique car collection -- and they did all this for just another $19 a month.
Benefits of Refinance Quotes
- Record Low Rates
- Lower Rates can Save You Money
- Interest Only Loans offer Lower Payments
- Tax Deductible
- Cash Out Loans
- 100% Financing Available
- 1st Time Homebuyers OK
- Poor Credit OK
- No Verification Income Loans
- Self Employed Borrowers OK
- Interest Only Loan Options
How to find the best Refinance Quotes
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