FHA refinancing with cash out
Homeowners with FHA loans have an excellent opportunity to cash out some of their equity when they refinance with NLC Loans. Whether you need cash for home repairs, college tuition, an emergency cash reserve fund, or other life event, your home can play an instrumental part in your quest for cash.
Refinancing and cashing out some of your equity can be a great way to take advantage of historically low mortgage interest rates–especially when you treat your home as an investment. You might be surprised to find out that not only can you cash out a portion of your home’s equity value with an FHA refinance with cash out loan, but you can also decrease your loan length and reduce your monthly payments as well in many circumstances.
Your home is an investment, so use it wisely.
FHA refinancing with cash out plays an important role in treating your home as the investment it truly is. When you take cash out, it is wise to keep your FHA mortgage loan term equal to– or in some cases, less than– where it was before you refinanced. This means that if you currently have 22 years left to pay on your 30-year FHA loan, you’ll want to replace the loan with an FHA refinance loan with a term of 22 years or fewer, if at all possible. Cashing out some of your equity and then refinancing back into another 30-year FHA loan isn’t usually a good idea, even though it’ll provide you with the lowest monthly payment.
It is important to consider what you’ll be using your FHA cash out refinancing equity payment for. If you’ll be paying off debt, whether that debt is credit cards, student loans, auto loans, or any other type of debt–you might be able to afford a mortgage payment that is a bit higher than the one you’re used to since you’ll no longer be making payments on those other debts as well.
The Benefits of FHA Term Reduction Refinancing
From increased property values to lower interest rates to paying off debt, cashing out a portion of your home’s equity with an FHA refinance loan with cash out is a great way to take advantage of money that’s already yours. Treat your home like the investment it is–and do it with strategy and purpose.
Talk to an NLC Loans personal mortgage advisor today about your FHA cash out refinancing options. You might be surprised by how much you can save while cashing out a portion of your equity to make your life a little easier at the same time.
As a result of refinancing, your total finance charges may be greater over the life of the loan. Ask your NLC Loans Personal Mortgage Advisor for more details.
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