Cash-out refinancing allows you to borrow money on your home. For example, if a home is appraised at $100,000 and the borrower's outstanding mortgage loan is $60,000, it is possible to enter into an 80% cash-out refinance transaction for a loan of $80,000 (80% of $100,000). The new mortgage of $80,000 will pay off the $60,000 loan and leave $20,000 cash-out to the borrowers.
Another option is a second lien home equity loan. This type of loan provides an alternative to refinancing which could be important if your existing loan has a very good rate or includes a prepayment penalty. 

What are the benefits?

By cashing out on your home, you can obtain cash on the value of your own home to pay off debts or upcoming expenses. The refinance transaction can also provide a better interest rate, reducing monthly mortgage payments – and it's tax-deductible.

How can we help?

Call TexasOne Community Credit Union to learn more about this type of refinancing. We can find a program suited to your financial needs. We offer low, affordable rates on cash-out programs for owner-occupied homes and non-owner occupied homes.