A cash-out loan is a refinancing option that helps homeowners use their home’s equity to pay off debt, finance large purchases, or fund home improvement projects.
Golden Oak Lending’s cash-out loans allow you to access some of your home’s equity by taking out a new home loan for more than is owed on your current mortgage, then taking the difference between the two in cash. For example, if you have a $200,000 home and you still owe $100,000 on your mortgage, but you would like to take $20,000 to start a business, you can refinance your mortgage for $120,000. Now you’ll have a new, low-rate mortgage and $20,000 in cash.
There are many advantages to a cash-out loan: