Do you have several high-interest sources of debt, such as credit cards or personal loans? Wouldn’t it be a relief to consolidate those bills into a single, low-interest payment each month? At MortgageDepot, we have access to refinancing programs that help our Pennsylvania clients turn overwhelming debt into a manageable monthly payment.
Cash-Out Refinancing Explained
In a cash-out refinance, you get a new mortgage for the amount you owe on your home plus the amount of equity you need in cash. Here’s an example: Let’s pretend that you have a $200,000 mortgage, you have paid off $50,000 of the principal, and you need $20,000 to cover high-interest debt. Your cash-out refinance would be worth $170,000 ($150,000 for your remaining mortgage balance and $20,000 cash).
At MortgageDepot, we help borrowers explore cash-out refinancing as a possible way to manage their debt. One important note: If you take advantage of cash-out refinancing, you can only tap into your equity. In the example above, you wouldn’t be able to borrow an additional $60,000 beyond your mortgage balance because you only have $50,000 in equity.
Consolidating Your Debt With Your Mortgage: The Benefits
If you have a mortgage in Pennsylvania, combining other existing forms of debt with your mortgage might be a savvy move. Here are a few of the benefits that our cash-out refinance clients experience when they use their funds to consolidate debt:
- Cash in hand to immediately pay off high-interest debt.
- A lower interest rate, which is usually tax-deductible.
- A better credit score as a result of paying off those high-interest bills.
Contact MortgageDepot Today!
MortgageDepot is Pennsylvania’s top source for mortgage and refinancing services. We’ve helped countless clients achieve their financial goals using their home equity. If refinancing sounds like a promising path, connect with us today to learn how to make the process work for you!
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