How much credit card debt are you carrying?
Let’s look at some figures:
That means on a $5,525 balance, you’d be expected to accrue $515 in interest for the year.
Our estimation here is based on the average – in fact, rates can be even higher!
Here’s how a cash-out refinance can help you:
Cash out-refinances can help you prioritize paying off your high-interest debt and allow you to pay less total interest over time thanks to the lower interest rate of a mortgage compared to consumer debt – meaning credit cards, and personal loans.
Right now, rates run generally around…
That means that you’re looking at a potential difference of almost 15%-20% in terms of accruing annual interest!
To estimate how much you could take out in a cash-out refinance, take the amount of principal paid off out of the total of your mortgage loan. For example, you have a $400,000 mortgage and still owe $200,000. Potentially you could draw out $200,000 in a cash-out refinance as that is the amount of principal you have paid to this date.
With the cash from the cash-out in hand, you can do anything you want! That’s right – the cash from a cash-out refinance does not come with rules on how it can be spent. You could upgrade your home with fresh paint or flooring, redo a few rooms, put on an addition, or pay off credit cards, student loans, cars, or maybe even go on vacation!
Why take out a cash-out refinance now?
Year-over-year home equity has increased 32.2%,5 and the average homeowner gained approximately $64,000 in equity during the past year, according to CoreLogic.5
Now is the time to cash-out!
Sources:
Disclaimers:
© 2022 Caliber Home Loans, Inc., 1525 S. Belt Line Rd., Coppell, TX 75019. 1-800-401-6587. NMLS #15622 (www.nmlsconsumeraccess.org). This is not a commitment to lend. All loan programs are subject to credit, underwriting, and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply.
By refinancing the existing loan, the total finance charges may be higher over the life of the loan. We may transfer your escrow account balance from your current loan to your new loan. If your current escrow amount is insufficient due to changes in taxes or insurance, we may require additional money when you close on your new loan.
All product and brand names are the property of their respective owners and their use does not imply affiliation or endorsement. Caliber Home Loans, Inc. and any above-mentioned companies are not affiliated.
© 2023 Caliber Home Loans, Inc. NMLS #15622
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*Closing cost offer available to customers who apply for a new purchase loan. Only available for single family primary residences and existing Caliber customers. Credit provided at closing. The offer is nontransferable and can only be used by the intended recipient. Advertised discount can only be applied toward payment of closing costs up to a total amount of $1,000 subject to product underwriting guidelines. Any portion of the discount amount not used toward closing costs will be waived. |
| **A pre-approval does not signify that all underwriting requirements have been met. Actual terms, including interest rate, are subject to change without prior notice and may vary based on eligibility criteria. All products are subject to credit and property approval. Not all products are available in all states or for all dollar amounts. Please contact Caliber for additional details. |
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| ***The lock will be honored up to 75 days total. Your rate is protected for up to 30 days to shop for a home. Once you identify a property, your rate will be locked for an additional 45 days. All rate lock extensions are subject to Caliber’s standard rate lock extension fees All rate lock extensions are subject to Caliber’s standard rate lock extension fees. Not available for all loan products. Please contact Caliber for additional details. |
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| ****Caliber agrees to pay the borrower the amount of the earnest money deposit (up to $5,000) following the home loan closing, if the loan does not close on or before the contract closing date due to a delay caused by Caliber. Void if there are any material changes to income or assets. Offer requires 30 business days from Caliber’s receipt of purchase contract to closing date. Other requirements include: Minimum 700 credit score, owner occupied purchase transaction. LTV and property type restrictions may apply. Available only through the Caliber Retail Channel. Payment may be subject to reporting for tax purposes. Please contact Caliber for additional details. |
