Take Cash Out For An Investment

What is the Benefit?

Congratulations – the equity you earned on your property is a great return of investment. The equity on your property may provide you with the opportunity to turn your return on investment into a larger one. With the recent substantial home equity increase, it may be more beneficial to use your equity gains to fund your next investment instead of going the traditional financing route.

Borrowing money for investing is no easy task through traditional financing means. Whether you’re looking to buy an investment property, start a stock portfolio, or fund a project – a cash-out refinance may get you the funds you need.

Here’s the breakdown of how a cash-out refinance is the ideal choice to fund your investment goals:

Personal Loan, Business Loan, or Credit Card

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More Difficult to Get Approved: Many banks may be reluctant to loan money to consumers for investment purposes because they may view it as risky

M

High Interest Rates: Interest rates with personal loans, credit cards, HELOC’s, or 2nd mortgages are typically higher

M

High Monthly Payment: Personal loan, business loan, and HELOC’s have shorter terms, so you may be required to pay a higher minimum monthly payment

Cash-Out Refinance

N

Low Interest Rates: Mortgage Interest Rates are typically lower than a business loan, personal loan, or credit card

N

Low Monthly Payment: With a cash-out refinance, you can have a term up to 30 years. A 30 year term means a lower monthly payment for you

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Avoid an Additional Monthly Payment: The funds you borrow for your investments will be consolidated into your mortgage loan so you don’t have to worry about making payments to another lender