Definition of Cash-Out Refinancing:
Orange County Cash-Out Refinancing:
Cash-out refinancing takes place when a homeowner takes out a mortgage with a larger principal balance than the one that they currently currently have. The result is that they get additional cash in the process. This is cash that they can then use for any purpose they find necessary. A cash-out refinancing turns some of a homeowner’s home equity into cash, whether in the form of a first or second mortgage. It simply means that the homeowner is taking out more money than is on the existing principal balance of their home loan. For most people in Orange County, their home is their biggest asset. If they might need extra money – for whatever reason, their home can be an excellent and wise source of funds.
Cash-out refinancing can be a great tool for combining a first and second mortgage, especially when a home owner considers that fact that second mortgages almost always have higher interest rates than first mortgages. A cash-out refinance in Orange County also gives the home-owner the potential to right-off the interest on their income taxes – which is an option that simply do not have with the credit cards or auto loans.