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Know the rates, know your options. Start building your homeownership plan today.
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Not sure what fits your budget? This calculator factors in your income, debts, and down payment to help you find the right price range.
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About
Cash-Out 15-Year
<p class="MsoNormal">Get the money you need for your next project while minimizing the interest you'll pay long term. </p>
Benefits
Readily Accessible Funds
Get immediate access to cash by tapping into your home equity.
Lower Interest Rate
Often offers lower interest rates compared to personal loans or credit cards.
Shorter Repayment Period
Decrease the life of your loan and boost your financial goals with a 15-year term.
Predictable Payments
Fixed-rate option ensures consistent monthly payments throughout the loan term.
Cash-out 15-Year Refinance Information
<p>A cash-out 15-year refinance allows homeowners to tap into their home's equity while potentially benefiting from a lower interest rate and shorter repayment period. To better understand how this refinance option can fit into your financial plans, you can start by <a href="/apply">speaking to one of our seasoned experts</a>.</p>
How Does a 15-year Cash-out Refinance Work?
<p>Here's a simplified explanation:</p><ul><li>As you repay your mortgage, your home builds equity.</li><li>When you refinance, you can access a larger loan amount than your current debt due to this equity.</li><li>Upon closing, you receive a check equal to the value of the equity you've accessed.</li><li>You can typically borrow up to 80% of your home's value, minus your current loan balance.</li></ul>
When to Consider a Cash-Out 15-Year Refinance
<p>This option might be suitable if:</p><ul><li>You urgently need finances or wish to enhance your financial situation.</li><li>You want to undertake home improvements to increase your home's value.</li><li>You're planning a significant life improvement and need funds.</li><li>You wish to reduce interest payments over the life of the loan.</li></ul>
Calculating Home Equity
<p>Home equity is calculated as follows:</p><p>Current home value - Existing loan payoff value = Home equity</p><p>In a cash-out refinance, you can typically access up to 80% of your home's value, ensuring you maintain some equity. Remember to account for closing costs, usually 2% to 3% of the loan's value.</p>
Pros and Cons of a Cash-Out 15-Year Refinance
<p>Understanding the advantages and disadvantages of a cash-out 15-year refinance can help you make an informed decision.</p>
Additional Pros
<ul><li>Potential tax deductions for home improvements (consult a tax professional)</li><li>Opportunity to boost credit score by consolidating debts</li><li>Funds can be used for various purposes, including debt consolidation or education expenses</li></ul>
Cons to Consider
<ul><li>Higher monthly payments due to increased loan amount and shorter term</li><li>Closing costs associated with refinancing</li><li>Potential for over-leveraging your home if not managed responsibly</li></ul>