A cash-out refinance is a mortgage-refinancing option in which the new mortgage is for a larger amount than the existing loan amount in order to convert home equity into cash.
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A cash-out refinance is a mortgage-refinancing option in which the new mortgage is for a larger amount than the existing loan amount in order to convert home equity into cash.
Apply for loan
Client has 4 Credit cards, a personal loan, a car loan, and a medical debt:
Minimum Payments:
Credit Card 1: $125.00/month with a $5,000 balance
Credit Card 2: 100.00/month with a $4,000 balance
Credit Card 3: $150.00/month with a $4,500 balance
Credit Card 4: $35.00/month with a $1,300 balance
Personal Loan: $200.00/month with a $10,000 balance
Car Loan: $325.00/month with a $15,000 balance
Medical debt: $150.00/month with a $3,000 balance
Total monthly minimum payments = $1,085
Total debt balance = $42,800
By rolling this debt into your mortgage not only are you potentially eligible for a tax write off but you will save thousands of dollars every year.
$42,800 over a 30-year mortgage at 4% interest will only cost you approximately $205/month that is a $880/month SAVINGS!! You can then decide what you would like to do with your money vs. the debt controlling your finances!!
Client is looking to borrow $40,000 to buy a car. If they were to take out a standard car loan at 4% over 5 years, their monthly obligation would be $736.66. On the other hand, if the client were to borrow that same $40,000 but spread it over their 15 year mortgage his monthly obligation would only be $295.88, that is a difference of $440.78/month!!