Consider Cash Out Refinancing for your Fall Renovation
As the month of August comes to a close and another September begins, that can only mean one thing: summer’s activities are ending, while autumn’s are just around the corner. Yes, it’s almost time to pack away the swimming suits and kayaks, to store the pontoon boats and the pool toys until next June comes around.
While this is a time of year that can be bittersweet, there’s no denying that there are plenty of things to do and look forward to during the fall months ahead. Now that the kids are back in school, let’s face it; you might have a little more time on your hands than you did just a few short months ago. So how are you planning on spending this additional gift of free time that you’ve been given?
Autumn is the perfect time of year to get the home renovation project you’ve long been planning underway. Whether you are planning a drastic renovation or if you are looking to install an addition to your home, a task of this size is certainly something to tackle before the bitter cold of winter arrives.
You may be thinking, “Sure, all of that sounds great, but where am I going to come up with the money to get this done?” The answer is simple: many homeowners like you use the equity in their current home to get the cash quickly. This useful process is known as “cash-out refinancing.”
According to Bankrate, cash-out refinancing refers to the process of refinancing your mortgage for more than you owe and then taking the cash difference. Let’s put this in numerical terms to potentially make this easier to understand. Say you own a $300,000 home and you currently own $200,000 on the current mortgage. This means that you have built up $100,000 worth of ownership, or equity, on your current house. So, for your upcoming renovation project, you could do a cash-out refinance to get the dollar amount of your estimated renovation cost. Say you think that renovation project will cost approximately $30,000. This means you could get a new loan worth a total of $230,000; this number comes from the $200,000 you still owe on your home, in addition to the $30,000 you’re going to take out in cash.
Now that Labor Day has passed and school is back in session, you may be blessed to find yourself with additional time on your hands. If you are in this enviable position and if a home renovation project has long been on your to-do list, act now and consider refinancing your home to turn that dream into a reality. Pacor Mortgages would be honored to help you through this process. Call 773-881-7744 or email clientservices@pacor.com to get started.
