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PROS & CONS OF CASH-OUT REFINANCING
As with everything in life, cash-out refinancing has its pros and
cons.
The Negatives of Cash-Out Refinancing
For those with bad credit:
Most of the time, when people are looking to get cash-out of there home by
refinancing, it is because they are in financial trouble. Many people with poor
credit end up going into default on their mortgage loans when they get money
from their home by refinancing.
For people with good credit:
If you have a positive credit history and your are in a good financial
state, but just need some extra cash, there really is no downside to cash-out
refinance loans.
For good and bad credit:
If the interest rate of current mortgage is a positive one, refinancing may
not be the best decision. Even though the interest rates of equity loans are
higher than when you cash-out, getting an equity loan will make more sense than
refinancing and losing the low rate you have on your first mortgage.
The Positive of Cash Out Refinancing
For those with bad credit:
The bottom line is that things happen in life that are beyond our control.
Meaning, we sometimes need money that we do not have, fast!
Cash-out refinancing
will solve your immediate money problems and there are ways that Star Loan
Services can
minimize the long-term effect of cash-out refinancing that were described above.
Cash-out now!
For people with good credit:
Cash-out refinancing is one of the best means of solving your short-term
money issues! However, this type of loan is not your only option. You get an
extra cash with a
home equity
loan or
line of credit.
We suggest that you
compare cash-out refinancing loans
with home equity loans to determine which of the two will better solve your
cash problems.
We Can Get You the Cash You Need, GOOD OR BAD CREDIT!
Star Loan Services will work with you to find an interest rate
that is close to your original mortgage, maybe even lower. We work within our
lending network, providing you with the most competitive rates possible, with
minimal closing costs
and fees. We can help you solve your money issues even if you have
bad credit!
Apply for
cash-out refinancing,
a trained
mortgage refinancing expert will help you decide what kind of plan
would be right for you.
Related Reading:
Preparing for Refinancing
Getting Control of Your Credit Card Debt
Cash-Out Refinancing Guide |
