Can I Get Cash Out And Still Pay Less Monthly?
Historically low rates are making it possible for some homeowners to reduce their overall payments—even with cash out loans.
Cash-Out with Lower Monthly Payments Possible
||30-yr $250,000 loan @ 5.5% = $1,420/month
|Cash out refinance
||30-yr $280,000 loan @ 4.0% = $1,337/month
In some cases, a rate reduction and higher loan balance can amount to a lower payment.
Refinancing an existing loan may increase your total finance charge over the life of the loan. Examples show principle and interest only. Typical APRs could be 5.7% and 4.2% respectively. Talk to a home loan professional for guidance on your unique situation.