Home Equity Lines of Credit

Cash-Out Refinance

A cash-out refinance mortgage can be extremely beneficial to your financial situation.  When you receive cash out from the increased value of your home, you can use it for debt consolidation, or any other purpose. 

Our Cash-out Refinance mortgages offer flexibility and variety so you can meet a diverse range of your borrowing needs; reducing a rate and monthly payment or paying off a junior lien not used in its entirety to acquire the subject property; paying for home improvements; or paying off a leasehold interest.

Cash-out refinancing allows you to access equity in your home by taking out a new mortgage that is greater than your old mortgage. The new mortgage is used to pay off your old mortgage and the difference between the two is your home equity loan.

Since you are replacing your first mortgage with a new one, cash-out refinancing only makes sense when the refinancing interest rate available to you is lower than your current mortgage. The lower interest rate in refinancing will lower your monthly payments on your mortgage. Since there are closing costs associated with refinancing, you should only refinance if the savings on your lower monthly payments can recover the closing costs before you sell your home.

Since cash-out refinancing is a first mortgage, it typically has a lower interest rate than a home equity loan, which is also a second mortgage.

To determine whether it makes sense to obtain a cash-out refinance mortgage, please contact our mortgage consultants at 1-800-448-8101 or 718-267-2000.

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