As the old saying goes, it is best to strike while the iron is hot. And while mortgage rates continue to trend down, the demand for housing is on the rise. This means it is an especially great time to invest in the equity of your home. And while there are several ways you can do this, the Dallas mortgage lenders at BrightPath recommend getting a cash-out refinance to receive funds that can be used to pay off debt, complete home improvements, and more!
At BrightPath, we have the insights you need to make the best decisions for your finances and your future.
Dallas Mortgage: Why a Cash-Out Refinance?
According to Dallas mortgage lenders, a cash-out refinance is an effective way to leverage the equity of your home. Doing this allows you to replace your mortgage with a new loan that is worth more than your current one. When you close on the loan, the difference in these two amounts will be given to you as cash that can be used for a variety of beneficial purposes.
When You Should Consider a Cash-Out Refinance
Dallas mortgage lenders will likely recommend that you get a cash-out refinance in the following situations.
- Home improvement. Home renovation can be expensive, so using your cash-out refinance for improvements around the house is a great way to supplement the cost while adding value and equity to your home. Just be sure that you select the right types of projects for your home renovation. These usually include improvements like adding a bathroom, remodeling the kitchen, finishing the basement, and upgrading essential features like the hot water tank or HVAC system.
- Pay off debt. As reported by Dallas mortgage lenders, one of the most common reasons people decide on a cash-out refinance is to pay off debt. By putting these funds towards student loans and credit card bills, you can resolve your debt while improving your credit score and debt-to-income ratio!
- Reduce your interest rate. If mortgage rates have lowered since you took out your mortgage, a cash-out refinance is a great way to reduce costs because you can decrease your monthly payments and the spend on interest over time.
- Switch from an adjustable to a fixed-rate mortgage. You may have originally opted for an adjustable-rate mortgage to help you get into your home because of its low introductory interest rate. However, if you plan to live in your home for an extended period, you may be ready to switch to the stable payments of a fixed-rate mortgage. If so, Dallas mortgage lenders will advise you to get a cash-out refinance to make this change.
Seek the Guidance You Need with the Dallas Mortgage Lenders at BrightPath
No matter the reason you are interested in a cash-out refinance, the Dallas mortgage lenders at BrightPath will be by your side every step of the way. With years of experience and expertise, they will provide the guidance you need to ensure you make the best choices to support your vision for your future.
Contact us today to schedule a free consultation.
At BrightPath, we will help you follow the path to a brighter tomorrow.