Cash Out Refinance And Why Am I Doing It

[{"selector":"#anim-56aef12f-b1cf-4ea3-932a-d3fa117a5814","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fe4d3e9d-4f93-4d03-aa97-5f3c3a7e7d02","keyframes":{"transform":["translate3d(0px, -196.92864%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

In a traditional refinance, you replace your existing mortgage with a new one for the same balance but with a lower interest rate or lower term or both.

[{"selector":"#anim-3a50582f-6f63-451e-817b-1d3c8c5fddbf","keyframes":{"opacity":[0,1]},"delay":250,"duration":1400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0636e9b1-ce96-4471-bed2-c0a8fbcdcda8","keyframes":{"transform":["translate3d(0px, 157.20765%, 0)","translate3d(0px, 0px, 0)"]},"delay":250,"duration":1400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c365bda6-eaff-4075-8805-7c20a8e6af47","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-587fc5f2-1fe0-442d-afe3-eb864633b88c","keyframes":{"transform":["translate3d(0px, 99.03864%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b43de64b-056d-4b95-a5ff-4cc11a73e912","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-27d33ff8-9465-4a7f-9e63-a743ead1a53f","keyframes":{"transform":["translate3d(-98.81517%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

A cash out refinance enables you to borrow money at the same time you refinance your loan. You refinance your mortgage and receive a check at closing.

[{"selector":"#anim-d3e94d1e-6086-4c39-8e01-2b5ef70f8d6b","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-3864d795-0f2b-4b71-aaea-1131e66b3543","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Gray Frame Corner Gray Frame Corner Gray Frame Corner Gray Frame Corner Learn more

A stock is a share in a company. The reason the stock prices go up over a period of time is because a company makes more money.

[{"selector":"#anim-64c8b1b3-cfc3-44d9-b3b1-b8ea2b7c408d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ced5993f-2073-44ed-9286-0779c54b74e1","keyframes":{"transform":["translate3d(0px, 210.33950%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Is Cash Out Refinance A Good Idea

[{"selector":"#anim-0f73e034-e72e-419a-b19b-8468fb274a65","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9eccd2ad-7aee-44e0-99e5-1511bfbb5c3b","keyframes":{"transform":["translate3d(0px, 243.86348%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Pros of a Cash Out Refinance

[{"selector":"#anim-d4b6ad60-75a3-4f4e-8ef7-fcae73033441","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-6351a595-70ab-45a6-bc12-4001d304cfb2","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-35f54d8e-2825-454c-afa7-9e5baed8457a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-793cb466-f0a4-4555-8f9b-f3336159acd3","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Gray Frame Corner Gray Frame Corner Gray Frame Corner Gray Frame Corner Learn more

Cons of a Cash out Refinance

[{"selector":"#anim-7a3c967d-cae3-41bf-8769-2d6261863309","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-355e6634-3bc9-465d-ad53-ae6556c920c7","keyframes":{"transform":["translate3d(0px, 422.40341%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-63ab33e6-4043-4b11-a9fd-c157b69c517d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fa76b0d8-8acc-4e3c-a85e-18c62836ee03","keyframes":{"transform":["translate3d(-132.94118%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f73f1869-4a11-4522-9bff-f4fb976e3c7c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1af04682-2d83-4345-8272-98803c551372","keyframes":{"transform":["translate3d(0px, 76.75121%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

The money you get from either a cash out refinance or a HELOC is not taxable because it is borrowed money you have to pay back.

[{"selector":"#anim-c70b74e2-c241-4066-8c44-cf1c81433914","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7994a6ca-37d5-4c2a-a49a-9dc3cb019139","keyframes":{"transform":["translate3d(0px, 87.05861%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-08d781be-9672-4307-9591-eac21a9ccd81","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-36bffcc9-6a0d-48ac-a288-45621156cd92","keyframes":{"transform":["translate3d(-97.63034%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f6da4c81-4030-4564-95ac-b444ae994c4b","keyframes":{"opacity":[0,1]},"delay":250,"duration":1400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3a2436e1-6eac-44f8-b521-58d50acb1f29","keyframes":{"transform":["translate3d(0px, 147.19705%, 0)","translate3d(0px, 0px, 0)"]},"delay":250,"duration":1400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c9969aa7-7067-486d-86d0-70ef30381eea","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-04558027-d87b-43b0-a68e-8602ccb2b550","keyframes":{"transform":["translate3d(-124.54213%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Swipe Up to Read More

[{"selector":"#anim-36daaa75-073d-4ef2-a878-c46482fcf0b4","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e920286b-b8b2-4176-b213-cc9c033989cb","keyframes":{"transform":["translate3d(259.40593%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-11d21a0b-4218-4997-b77c-6cca635d3dff","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-46030c3e-6c60-4fab-910b-49c9127c0b06","keyframes":{"transform":["translate3d(151.50000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5b95cc72-2830-4e46-be2b-6c24a4c49288","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dba1889e-ebef-4374-bee3-8480ea00f935","keyframes":{"transform":["translate3d(42.07921%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8c05e032-8d8b-40a7-b69d-ef5d064ef245","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-15b34983-2f37-46ec-8ab5-786e10aa51e7","keyframes":{"transform":["translate3d(-260.89109%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-09dcc726-9e11-46bc-803a-28cef40d994d","keyframes":{"opacity":[0,1]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1e7dc8f7-f093-44d0-9354-9983287eeff4","keyframes":{"transform":["translate3d(-154.5%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9b368229-cc71-405f-ba22-6a93b7145ccc","keyframes":{"opacity":[0,1]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c5e361eb-e9ac-4dac-b3e3-d626ecea8ca0","keyframes":{"transform":["translate3d(-44.55445%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9b09fc0b-5728-4983-bfe2-58f288f15a0e","keyframes":{"opacity":[0,1]},"delay":600,"duration":1600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d71db440-d578-46c0-8707-319d39b65891","keyframes":{"opacity":[0,1]},"delay":600,"duration":1600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] I Bonds: Are Series I Savings Bonds Worth Buying? 12 Best States For Real Estate Investors And What Factors To Consider

Cash Out Refinance And Why Am I Doing It

In a traditional refinance, you replace your existing mortgage with a new one for the same balance but with a lower interest rate or lower term or both.

A cash out refinance enables you to borrow money at the same time you refinance your loan. You refinance your mortgage and receive a check at closing.

A stock is a share in a company. The reason the stock prices go up over a period of time is because a company makes more money.

How Much Can I Cash Out Refinance

Is Cash Out Refinance A Good Idea

There are several pros and cons of a cash out refinance.

Pros of a Cash Out Refinance

1. Tax benefits: Interest rates on loans can be tax deductible depending on several factors. Talk to your CPA

Cons of a Cash out Refinance

Losing your house: Typically it makes sense to use the cash out refinancing to pay off higher interest loans.

The money you get from either a cash out refinance or a HELOC is not taxable because it is borrowed money you have to pay back.

Tax Implications of Cash Out Refinance

Swipe Up to Read More

Swipe Up to Read More

Read more