Pay Off

Another

Loan

(i.e. Auto, Personal Loan)

Pay Off Another Loan

(i.e. Auto, Personal Loan)

What is the Benefit?

Paying off a loan through a cash-out refinance is a great way to save interest and/or lower your monthly payment. You can pay off almost any type of installment loan through a cash-out refinance such as auto loans, student loans, personal loans, and you can even pay off revolving credit such as your credit cards.

Consolidating your loans into one payment is a finance hack that can save you thousands and a great way to take advantage of the current property equity increase.

Here’s the breakdown on benefits of taking advantage of a cash-out refinance versus financing other debt through other types of loans:

Traditional Loan

M

Higher Interest Rates: Auto loans, personal loans, or any other type of financing typically have high interest rates starting from 5% or greater

M

Higher Monthly Payment: the term of a typical installment loan is 5-7 years combined with a higher rate making the payment substantially higher when compared to the payment of a cash-out refinance mortgage financing in the same debt

What Will My Monthly Payment Be?

Get An Instant Offer



No Credit Check



No Application



No Obligation

Cash-Out Refinance

N

One Monthly Payment: once we payoff your other loan, your loans will be consolidated into one mortgage loan so you don’t have to worry about making payments to another lender

N

Lower & Fixed Interest Rate: many installment loans have higher rates, adjustable rates, or start out with a low teaser rates and convert to adjustable rates once the teaser period ends

N

Lower Monthly Payment: mortgage terms are longer (up to 30 years) which will lower your monthly payment versus paying them separately

Example: A $50,000 loan at a rate of 4.99% is about $943 per month over 5 years, however, that same amount borrowed against the equity of your home may be only $300-400 more than your current monthly payment even when including the debt from the other loan into your mortgage. This results in a cashflow increase of $500-600 per month. This is only an example of course and we are always happy to show you an apple-to-apple scenario to see if a cash-out refinance would indeed make sense for you in lieu of a traditional vehicle loan