Refinance Mortgage: Get Cash Back When You Refinance Your Mortgage Loan

Your home can be a valuable source of credit if you are willing to give up your equity in exchange for the cash. Refinancing can also lower your monthly payment amount if you qualify for a lower interest rate or extend the term of your new mortgage. Here are tips to help you access the cash from your equity without losing your shirt to the lender.

Refinancing your mortgage to take cash back means that you will borrow more with your new mortgage than you owe on the old mortgage. The difference between what you owe and what you borrow is what you get in cash at closing. If you have a substantial amount of equity in your home, refinancing with cash back could save you money over other types of home equity loans.

If your financial situation requires a lower monthly payment amount to make ends meet you can accomplish this regardless of your credit and get cash back when you close. If you are homeowner with good credit you may qualify for a better interest rate to lower your payment amount. If your credit prevents you from qualifying for a better interest rate you can still lower the payment amount by extending the term length of the new mortgage loan.

Before you sign for the new mortgage it is important to shop from a variety of mortgage lenders for the most competitive loan offer. When shopping for the best loan offer you need to compare all aspects of the loan, not just the interest rate. Many homeowners make the mistake of signing for a mortgage without comparing the lender fees, closing costs, discount and origination points, and any penalties associated with the loan. You can learn more about your mortgage options, including common mistakes to avoid by registering for a free mortgage guidebook.

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