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A cash-out refinance is a great way to pay down debts, get your finances under control, and do some work on your house.  There are lots of other reasons to get a cash out refinance, though.

Let’s just make up a family.  We’ll call them the Smiths. They took out a $100,000, 30-year fixed rate mortgage on a $130,000 house in mid-1999. Their interest rate was 7.24 percent, making their monthly payment $681.50 (plus taxes, insurance and other extras).

The Smiths have been happy with this arrangement, so they never thought to refinance, even though rates right now are WAY lower. Now it’s summer of 2015, and they qualify for a rate of 3.27 percent. They still owe $90,000 on their mortgage, but they want $20,000 cash for their daughter’s wedding. They could refinance $110,000 at a cost of $479.94 per month for 30 years, allowing them to pocket the $20,000.

When you’re doing the math, don’t forget that you may have to pay PMI if you’re borrowing more than 80% of the value of the home.

Just remember, it’s YOUR mortgage.  You have to make hard decisions on what is important to you.  Some people will use their cash out refinance to pay off debts and consolidate credits. This is a great choice because it pays off high-interest credit cards at a lower interest rate, saving money on interest payments.  Cash Out Refinances can also be used for improvements on the home.  This is a great way to use the equity in your home to improve the home’s value.  Many homeowners use a cash-out refinance for the reason above, paying for a wedding.  If you need a car, or want a boat or a vacation home, a cash-out refinance is a great way to afford all of these, and a today’s low interest rates, it’s cheaper than ever.

Get Started

So don’t wait.  If you’ve thought about a Cash Out Refinance in the past, or are looking for a Debt Consolidation, right now, interest rates are low.  That is subject to change.  The recent economic downturn has actually lowered rates, but it won’t last for long.  The fed is itching to raise rates again.  If you want to learn more about Cash Out Refinances, or just have any mortgage questions, call us in St. Louis at 314-781-9400, In Chicago at 773-770-4727, in Indianapolis at 317-550-1515, and Nashville at (615) 810-8555.

You can also apply online at or follow us on Twitter (@TheHomeLoanEx) to learn all about mortgages and get your mortgage questions answered.  Nobody makes it easier to buy a new home or refinance your current one than The Home Loan Expert, Ryan Kelley.