One of the most common reasons people refinance their home is to consolidate debt. Why should a cash-out refinance in Georgia be no surprise as a great option to pay off debt? Equity levels have been on the rise nationwide in the past couple of years and mortgage rates are still low.
Jump at the chance while it’s still very beneficial to use your home equity to get out of personal debt. BrightPath is the leading private mortgage lender of Georgia. Learn why their cash-out refinance plan may be the choice for you.
Cash-Out Refinancing to Pay Off Debt
Essentially, high interest debts such as credit card debt is transferred to a new mortgage. The objective is that your new mortgage will have a much lower interest rate than your previous mortgage.
Why transfer my credit card debt to my mortgage? That seems like a lot of work.
Credit cards have some of the highest interest rates. Similarly, look at the interest rates of any personal loans, auto loans, or student loans you have?
A private mortgage lender will run the numbers to show you how to get a lower interest rate on a mortgage through refinancing. Therefore, any high-interest debt you have will use the lower interest rate of your new mortgage.
How do I determine how much money I can get with a cash-out refinance?
Different factors affect the amount of cash you can get. A mortgage lender will subtract your old mortgage loan balance from the amount of your new mortgage loan. Although, there are also refinancing fees, different types of loans, and different amounts of equity. All of this can affect how much you can receive from a cash-out refinance in Georgia.
Georgia Cash-Out Refinance Options to Consolidate Debt
This is specific to veterans, active military members, or their spouses. Refinance the total amount of your home’s value with the VA loan
VA Interest Rate Reduction Refinance Loan (IRRRL)
Is your first mortgage a VA loan? Then, you may be eligible for the IRRRL program. The IRRRL loan lowers your interest rate and monthly mortgage payment. Plus, it requires no evaluation or credit check. Ask a private mortgage lender about converting your adjustable-rate mortgage to a fixed-rate mortgage with the IRRRL program.
Ask a private mortgage lender how you can potentially save thousands in interest.
This mortgage is great for budgeting due to its fixed payments.
Refinance up to 80% of your home’s value.
This only applies if you financed your home with an FHA loan. You can receive lowered lending fees and lower monthly mortgage payments without a new appraisal required. Processing time for this refinancing is also minimal.
Home Affordable Refinance Program (HARP)
This is a federal program that allows borrowers to refinance up to 125% of their home’s value.
Cash-Out Refinance in Georgia with BrightPath
Are you looking to substantially increase monthly cash flow by using your home equity to lower your debt payments? The time is now. A cash-out refinance in Georgia may help you achieve your financial goals.
Get on the right path with BrightPath today with a cash-out refinance in Georgia. Contact their team of expert mortgage lenders now.