Over the last 40 years homes appreciated across the United States at an average of 4.2% per year, and much higher in some areas. Each region, county, and property are unique so you will need an appraisal to determine the current value of your home. Your mortgage payments have also contributed to lowering your principle balance. The spread between your home’s appreciation and the principle pay-down is your equity. A cash-out refinance allows you to tap into some of this equity – usually up to 80 percent.

Your Intercap loan officer can help you determine how much equity you have and how much you can take out through a cash-out refinance. You can use this money to make improvements on your home and/or to pay down debt. A cash-out refinance will likely increase your monthly mortgage payment but there are some cases where a new loan provides a better rate and terms to minimize the added costs of this type of refinance.

A debt-consolidation refinance can actually help you pay off your home and debt in record time. Many are paying off their home in 10-15 years or less. The secret is using your home equity and monthly savings to pay off your home quicker. Click here for more information about a debt-consolidation refinance.