Buying your own home was a solid financial decision. Now that you’ve paid off part of your mortgage, you’ve earned the chance to make another investment for the future. You could do home renovations and gain the equity right back through increased home value, or you could save a loved one from student-loan debt by paying for their college degree. You could buy a quiet cabin in the woods or a sleek new fishing boat, or you could even start a business and finally be your own boss!
You know what’s best for you, and Loanwise knows how to get you the best deal.
It’s better. Instead of having another loan payment on top of your mortgage, cash-out refinancing replaces your old mortgage with a new one while unlocking the equity you’ve built up in your home at the same time.
A cash-out refi gives you the opportunity to reinvest the money you’ve already paid into your mortgage without being burdened by an extra expense every month. Interest rates for refinancing are usually lower than for home-equity loans.