Zion Mortgage has many mortgage products available, including cash-out refinance loans. Homeowners that have available equity in their homes might be eligible to refinance their mortgage and cash out. Cash-out refinancing means that the current mortgage is replaced with a new one that has a higher amount attached to it. The borrower gets the extra amount of the new mortgage in cash. Why would someone do this? There are few reasons that we will cover. Contact Zion Mortgage today for a cash-out refinance loan in Texas.
Pay Off High-Interest Debt
Many people have a ton of credit card debt these days. It’s not uncommon for a person to have tens of thousands of dollars in credit card debt. Along with that debt comes insanely high interest rates. People apply for a cash-out refinance loan so that they can eliminate all that high-interest debt in one shot. It’s not limited to credit card debt either. You can pay off car loans, student loans, or anything else you need to. The cash is yours to do with as you please. Going this route eliminates all the accrued debt, and the borrower is then left with only the mortgage payment to make.
Many people want to refinance and cash out so that they can make home improvements. For most people, their home is the largest investment they will ever make. Doing improvements to the house makes that investment more valuable. Remodeling a kitchen, bathroom, or finishing a basement adds value to homes immediately.
Pay for Education
Cash-out mortgage loans are a good way to pay for college. Tuition rates at universities are rising all the time, making it difficult to pay for an education. Homeowners with equity they can cash out use that money to help their kids pay for college instead of leaving them with debt after graduation. If you want to find out about a cash-out refinance loan in Texas, contact Zion Mortgage today.