A cash-out refinance in Georgia will benefit you the most by working with a private mortgage company. Unlike banks and large mortgage corporations, private Georgia mortgage lenders offer a tailored refinancing experience and higher approval rates.
Is it the right time for a Georgia cash-out refinance loan? Do you think you have acquired enough home equity to get cash back? Are you looking to consolidate debt and increase the value of your house through home improvements?
Since the current housing market is most beneficial to home buyers, a cash-out refinance in Georgia is definitely worth considering.
Let’s examine what a cash-out refinance in Georgia with a private lender can do for your financial future.
What is Cash-Out Refinancing?
Refinancing is the process of getting better mortgage rate by taking out a completely new loan. In short, a borrower refinances their home based on the current market value. Refinancing allows you to switch from an adjustable-rate mortgage to a fixed-rate mortgage. A new-and-improved mortgage has the power to positively influence market conditions and help you achieve various advantages.
What is equity? How can I cash-out equity to consolidate debt?
Home equity is the amount of money you have paid off on your house. In other words, it is the appraised value of your home minus the amount you still owe on your mortgage loan.
The more equity you have, the more money you may be able to get from a cash-out refinance.
Mortgage refinance replaces current mortgage home loans with new ones. Georgia, as most states, require a homeowner to have at least 20% equity in your property for a cash-out refinance. Homeowners refinance to lower their monthly payments, interest rates, and insurance charges.
What’s the difference between a Georgia cash-out refinance and a home equity loan?
Essentially, a cash-out refinance is a new first mortgage, not a loan. In contrast, home equity loans are second mortgages, (mortgages that you take out in addition to your mortgage).
Primarily, Georgia cash-out refinance gives a homeowner shorter loan terms and greater financial stability if you’ve built equity on your house. A borrower can receive the cash value of the equity difference. Cash-out refinancing allows a homeowner to:
- Obtain money for home improvements
- Pay off debt
- Get money from their equity for a number of other reasons
Cash-Out Refinance Costs
Specifically, there are closing costs associated with a cash-out refinance in Georgia. Comparable to a home equity loan, the first $100,000 of a cash-out refinance is tax deductible.
A private mortgage lender will work to see if you can breakeven on refinance costs without incurring a loss on your home.
Of course, refinance costs are important to consider and vary depending on the type of loan you’re looking for. Although, your main concern as a home owner should be the overall savings that refinancing gives you.
Below are common fees of a cash-out refinance in Georgia. Remember, even with certain fees, a refinance could greatly benefit you.
Application Fee/Origination Charge (Loan Setup Fee)
There is a charge for a credit report check and processing of your refinance application. This charge includes other administrative tasks associated with funding your loan.
This is to obtain a current home appraisal to determine loan-to-value.
Closing/Settlement Agent or Attorney Review Fee
A charge is required for a professional to conduct the closing.
Title Insurance and Search
A new lender’s policy is required to obtain a new loan.
Situational expenses such as flood certification fees, survey costs, pest inspection fees, and courier fees may be required.
Find out how long it will take before you break even on a cash-out refinance, as well as savings you’ll get afterwards with BrightPath’s Refinance Calculator. Their Amortization Calculator is another great resource.
Georgia Cash-Out Refinance with BrightPath
Let BrightPath’s mortgage experts do a comprehensive analysis for you. They will look at all factors and refinance rates to give you a detailed quote. You’ll be able to see how much money you can receive and possibly how low your monthly payments can be.
Contact their team anytime to get started on your new financial future.