Use your Home Equity Wisely!
Contact your Geneva Financial Loan offier today to see if a cash-out refinance is the right move for you.
Contact your Geneva Financial Loan offier today to see if a cash-out refinance is the right move for you.
A cash-out refinance, as defined by Investopia, is:
“A cash-out refinance is a mortgage refinancing option that lets you convert home equity into cash. A new mortgage is taken out for more than your previous mortgage balance, and the difference is paid to you in cash.”
If you’ve owned your home for a while, you’re likely building up equity from the portion of your home that you are paying off. The equity from your home will be turned into cash through the cash-out refinance process and be used as an investment into your children’s education, business venture, or even an additional property.
A cash-out refinance can also help consolidate your debts into one place. If you have multiple debts to pay off, you can use the equity from your home to pay them off to eliminate these debts and only worry about one monthly payment.
1. Savings. Put this money away for a rainy day. Having a larger amount of money saved up is always good for emergencies such as medical, time off work, costly car repairs, etc. This will help eliminate stressful situations later on down the road.
2. Pay down non-tax deductible/high rate debt. Pay off large balance credit cards, and other high balances lines of credit to better your financial situation. This will, in turn, free up some cash on a monthly basis that you could invest.
3. Invest, Invest, Invest. Invest your money, and do so wisely. Contribute larger portions to your 401K , especially if you have an employer match program. Ramp up your savings for your children’s future.
4. Make sure you are protected. Do you have life, disability and property insurance? Doing everything else right matters little if tragedy strikes and you lose it all due to lack of coverage. Why not set up a review with your insurance pro today? Call me if you need a referral to someone who can help.
5. Pay off your loan faster. This is not always the best thing to do with your cash (see numbers 1, 2, 3 and 4), but for some, having this peace of mind sits the best.
*This is not an application to refinance, your Geneva Financial Loan Officer will begin the refinance process.