Cash Out Refinance Loan Benefits Reviewed In A New Article From Loan Love

Share Article provides a new guide on cash out refinancing. is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. In order to help borrowers find the best loans for their situations, the website is continuously updated with new materials that can help them understand the options that are available to them. A recent article from the website continues to help expand the readers’ knowledge base by providing a handy guide on cash out refinance loans and their benefits.

In this new article, the author explains that the mindset accompanying homeownership has changes some what over the past few decades. It used to be that the end goal was to pay off a mortgage so that the owner could live in their house free and clear, however, thanks to things like tax deductibility on mortgage interest, many current mortgage borrowers choose to prolong their mortgage loans through refinances. Another benefit that is promoting this new mindset is that now there are many more options for homeowners to get their hands on the equity that they have built in their homes over the years. These range from home equity loans, to lines of credit, and of course the ever popular cash out refinance loan.

So what is a cash out refinance loan? The article explains: “The concept is actually pretty simple: As you pay off your mortgage – and if your home increases in value, as most homes tend to do in “normal” housing markets – eventually, you’ll have a significant gap between what you owe on your home and what it’s worth; that’s the equity that’s freed up in a cash-out refinance. A cash-out refinance lets you refinance the terms of your loan and place a new and bigger mortgage on it, enabling you to have access to that equity. For instance, say you have a mortgage of $150,000 remaining on your home. Over time, the value of your home has increased to $250,000. That $100,000 difference is the equity you have in your home, and thanks to the cash-out refinance, it could be burning a hole in your pocket in just a few weeks.”

While there are limitations to how much the homeowner can actually take out (usually about 80% of the home’s loan-to-value (LTV) ratio) these loans are still great options for those who would like some extra cash on hand to fulfill any number of purposes. Some of the reasons that a homeowner might want to take out a cash our refinance mortgage loan include:

  •     Paying for college tuition (either for the homeowners themselves or for their children)
  •     Wedding expenses (again, either for the actual homeowner or their kids)
  •     Renovations which would help to increase the home’s equity
  •     Purchase of an investment property
  •     Or starting up a new business venture

These are just a few of the reasons that some people opt for cash out refinances. As the article states: “No matter what the reason, that equity is your money. Why keep it locked up in your house? A cash-out refinance means you can access that value and still save money by taking advantage of today’s low rates.”

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Kevin Blue
Loan Love
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