A cash-out refinance with BBVA can be a great way to finance home improvements, consolidate debt, pay off college tuition, cover an emergency expense, or take care of other financial needs.
But is a cash-out refinance the best option for you? In a cash-out refinance, you refinance your existing mortgage for more than you currently owe, then receive the difference in cash. If you plan to stay in your home for a few more years and current mortgage rates are favorable, a cash-out refinance can be a great way to put extra money in your pocket.
With cash-out refinancing, you need to weigh the benefits of how you’re going to use the money against the amount of time it will take to pay off the loan. Here are some questions to consider:
- Are interest rates lower than your current financing?
- How much cash do you need?
- What will your monthly payment amount be?
- How will this affect your taxes?
- What’s the total cost of borrowing?
- What’s your break-even point?
We’re here to talk through the details of cash-out refinancing. A mortgage specialist can help you compare your current financing to the current interest rate, understand how much money you need, define what your projected payment amount will be, and make you aware of any changes to your taxes. Contact a BBVA Mortgage Specialist today!
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