💰 What Will My Refinance Closing Costs Be?
⚖️ Cash-Out Refinance vs. Home Equity Loan: What’s Better?
How to turn your home equity into real financial flexibility.
If you’ve owned your home for a few years, chances are you’ve built up equity — especially with rising home values.
A cash-out refinance lets you tap into that equity by replacing your existing mortgage with a new, larger loan — and taking the difference out in cash.
It’s one of the most popular ways to fund renovations, pay off debt, or create financial breathing room without selling your home.
Here’s how it works — and whether it might make sense for you.
🔁 How a Cash-Out Refinance Works
Let’s say your home is worth $450,000 and you owe $280,000 on your current mortgage.
You could refinance into a new loan for $350,000, pay off your original $280,000 balance, and receive $70,000 in cash (minus closing costs).
You still make one monthly mortgage payment — but now, you’ve unlocked part of your home’s value to use however you need.
💡 What Can You Use the Cash For?
There are no restrictions on how you use the money from a cash-out refinance.
Popular uses include:
- 🏡 Home renovations and repairs
- 💳 Paying off high-interest credit card debt
- 🎓 Education expenses
- 🏥 Medical bills or emergency savings
- 📈 Investing or starting a business
- 👪 Supporting family or life transitions
📘 The key is turning your equity into something that supports your financial goals.
✅ What Are the Benefits?
- Access large amounts of cash at a relatively low rate
- Consolidate debts into a single monthly payment
- Potentially improve your monthly cash flow
- Stay in your home and keep building equity
It’s one of the most flexible ways to use the value you’ve already built — without selling or taking on additional loans.
⚠️ What Are the Considerations?
- Your monthly payment may increase if your new loan is larger or if rates are higher
- You’re resetting the clock on your mortgage term
- You’re putting more of your equity into an active loan — so using the funds wisely is key
That’s why it’s important to work with a lender who can walk you through both the numbers and the strategy.
🧠 Do You Qualify for a Cash-Out Refinance?
Qualifications are based on:
- Your current home value (we’ll help estimate it)
- Your remaining loan balance
- Your credit score and debt-to-income (DTI) ratio
- Typically, you’ll need at least 20% equity remaining after the refinance
📍 Not sure where you stand? We’ll run the numbers for you with no pressure and no obligation.
🏢 Why PRMI?
As a direct lender, PRMI handles most of your cash-out refinance in-house — with speed, clarity, and full transparency.
We help you:
- Understand your equity and loan options
- Compare refinance vs. home equity solutions
- Build a long-term strategy — not just take out money and walk away
👇 Curious What You Could Access?
Let’s check your equity, run your numbers, and explore what a cash-out refinance could do for your goals.