Over the last 40 years homes appreciated across the United States at an average of 4 percent per year. 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 (recommended) and/or to pay down debt or pay for an upcoming expense. 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.