You can use the equity in your home to consolidate other debt or to fund other expenses. A cash-out refinance replaces your current mortgage for more than you currently owe, but you get the difference in cash to use as you need. This calculator may help you decide if it's something worth considering, and give you a possible idea of a mortgage rate you might have after refinancing.
Question answer section
A cash-out refinance is when you take out a new home loan for more money than you owe on your current loan and receive the difference in cash. It allows you to tap into the equity in your home.
Cash-out refinancing makes sense:
You may be able to access about $150,550 if you cashed out today.
Another option for getting cash out of your home is with a home equity loan. With Discover Home Equity Loans, there are no origination fees and no cash required at closing. Get a no-obligation quote for a home equity loan from Discover Home Equity Loans.
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What does this possibly mean for me?
The above is an estimated amount of cash you can take out based on the equity you've built in your home. This amount is based on your existing loan amount(s) and the estimated current value of your home and assumes that you could borrow up to 75% of the value of your home. There are benefits and risks of doing a cash-out refinance. You can often borrow at an attractive rate to finance home improvements, education, or other expenses for less than you'd pay with a different type of loan. Keep in mind, though, that whatever you borrow eventually has to be paid back. It's important to consider upfront closing costs on your new loan, and the time it will take you to recoup those costs. If your refinance is at a lower rate than the previous loan, you may save money if you continue making the same or higher payments. If you lower your payments too, however, you may pay higher total interest even though your rate is lower, because the debt is extended over a longer period.
Try the Debt Consolidation Calculator to find out how much you could reduce your payments by consolidating existing loans.
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