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- Up to 100% of your homes value
- Consolidate debt
- Upgrade your home
- Buy a 2nd home or investment property
- Or just pull out cash!
A VA Cash-out Loan is a popular way to tap into your home’s equity and lower your monthly mortgage payment.
If you have enough equity in your home, you can take cash out of your home equity to pay off high-interest debt or make home improvements.
With a VA cash-out loan, you can borrow up to 100% of your home’s value.
You can use the extra cash to pay off credit card debt, student loans, or other high-interest debt. You can also use the cash for home improvements, such as a kitchen renovation or a new roof.
Pay for Home Improvements And Renovations
The most common reason for a cash-out loan is to pay for home improvements. This is because refinancing is a low-interest way to get tax-free cash to remodel your kitchen, finish your basement or upgrade anything else you choose in your home. The more equity you have built up, the more money you can cash out to pay for home improvements. VA Loans allow you to cash-out up to 100% of your homes equity.
Pay Off Debt
Debt consolidation is the second most common reason for a cash-out refinance. The objective of a cash-out refinance for debt consolidation is to reduce your monthly payments on debts. And you do that by transferring those high-interest debts to your new mortgage, which should have a much lower interest rate and payment. The most common high-interest debt is credit cards.
Get a Lower Interest Rate
Mortgage and refinance interest rates are typically lower than credit card interest rates. You could save thousands in interest over time by refinancing your mortgage to the lowest mortgage rate.
Free up Money to Invest
When you consider the power of compounding interest, it can be a smart decision to free up money and start saving for retirement sooner rather than later. Cash-out refinances provide you with funds to supplement your retirement savings or start a student fund.