South Florida homeowners are once again reaping the rewards of high property values, causing many homeowners to be eligible to either refinance their homes, or take out equity lines, for a cash out.
Refinancing allows a new loan to replace an old one. The reason to refinance are either to obtain a better interest rate or terms then exist on the current mortgage, or, to take cash out against the property.
An example of a refinance is:
Current Loan balance: $250,000.00 Interest rate: 5.75% Payment: $1458.00
Fair Market Value of home $450,000.00
Equity: $200,000.00
New Loan $$360,000.00 New Interest rate: 3.75% Payment: $1667.00
Cash to homeowner borrower at closing: $110,000.00
In this example, the borrower is paying $209.00 dollars more a month however gets $110,000.00 at closing paid to them for their own use. They can either pay credit cards, debt, buy a car, buy another property. Or merely keep it in the bank for future needs.
If you feel your home has equity, or are unsure, call us.
At the Law Offices of Jacqueline Salcines, PA, attorney Jacqueline Salcines is not only a realtor, but holds a dual degree in both accounting and law and can provide both tax and legal advice.
The first consultation is always free of charge. Or email attorney Jacqueline Salcines directly your real estate question at J.Salcines@salcineslaw.com
TRUST | COMMITMENT | RESULTS
Jacqueline A. Salcines