At Locklin Capital, we offer many different types of lending programs. One of our many offerings is the cash-out refinance.
It doesn’t sound particularly exciting, but it is really a great opportunity for some borrowers who have equity in a property.
We’ll explain why.
Equity Into Cash
Some of the highfalutin terms they use in the mortgage industry are almost willfully confusing, and they hide the beautiful reality, which is that if you turn equity into cash, you’re getting money in the bank that you can spend immediately.
Let’s say you’ve lived in a property for a while, and you paid in mortgage payments for seven or eight years, and you have $50,000 of equity in the property. You can do a cash-out refinance and get something like $25,000 in cold, hard cash, which is an amazing lifesaver for so many families and households who are cash-strapped as a result of coronavirus or anything else.
Or, like many of our customers, you fixed and flipped a property, and you now have high value in it. You don’t necessarily want to sell it, but you want to get cash out for your next real estate strategy. Yes, you can do a cash-out refinance, and that’s likely to help you in some specific ways, especially if you do it with a firm that is committed to making it easy and equitable for you.
Looking Out For The Back End
The other end of this is obviously the long-term debt that you’ll have to pay down. Getting a cash-out refinance means you start the clock over on a new amount of money, so your payments may change. Having said that, as long as you can manage those payments, you have that lump sum of cash that you can use for all kinds of other purchases, which can give you a good degree of economic freedom in the moment to spend on transportation, education or anything else that will improve your lot in life.
A Good Process
Again, we deal with many investors who have property and want to use it to their economic and financial benefit. We work with people in good faith as an excellent partner for getting the lending solutions that you need for this or any other kind of borrowing program. Make the movement to settlement a breeze with Locklin Capital, or ask us about different hard money or bridge loan options. We work with you!