Real estate word of the day is going to be Cash out refinance or you say it as Refinance. OK, go ahead.
All right. A cash out refinance is when a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use. It is referred to as a cash out refinance.
Very good. So unit just to find it. I’m going to use it in a sentence. And I would say that Shawna recently utilized a cash out refinance to take all the money out of her home and buy brand new shoes. Oh, that’s kind of a shoe. So you can and the reason that I use that expect that that exact sentence is because Shawna does like shoes. Right.
But you can spend it on personal items. There’s not a requirement you could literally buy anything. I was trying to show a little bit of a crazy example of something you could do with the money. And she just buys like a whole home full of shoes. Mm hmm. Right now, that might make her happy. It might not add a ton of value, but it’s just one of those things. Right.
You could spend on anything from home improvements when you could get a home improvement loan or, you know, or a home. That’s a home equity line of credit. Well, you have no idea you could pay off other debts that are in higher interest rates and do that. A lot of people utilize it sometimes to pay for college when they tap out certain things, unexpected medical expenses that create real problems, you know, are other common ones. Right. And like loss of jobs, your range of things. Yes, it is day to day and tap into It like a savings account.
Kind of it’s it’s a little bit more difficult to , you know, to to access. And there’s fees associated with it. But that’s what a cash out refinances. So talk to your lender if you’re interested in that and they can give you more info.
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