Regulations aside, it’s very important to make sure that refinancing helps you meet your financial goals.
Deciding if it makes sense to refinance your home depends on a number of factors: Does your current lender have a prepayment penalty? Are interest rates lower now than they were when you first got your home loan? Use our refinance calculator to see if refinancing your home can help you meet your goal.
The average credit card interest rate is around 15%.
By comparison, mortgage rates are currently in the 3–4% range.
It’s possible to add the costs associated with getting a new mortgage into the total refinance amount to avoid paying anything out of pocket at closing.
However, refinancing to get cash out or consolidate your debt may result in a longer loan term or a higher rate, and that might mean paying more in interest overall in the long run.
Home equity is the appraised value of your home minus the amount you still owe on your loan.
The more equity you have, the more money you may be able to get from a cash-out refinance.
Many homeowners take cash out to pay off high-interest debt or make home improvements.
Use our refinance calculator to see if you have enough equity to reach your financial goal.