The realization that borrowing money costs more than just spending it out right may be one of the greatest disappointments of becoming an adult. My sweet son suggested, “just use your credit card” in response to my statement, “I don’t have the money for that”. Oh, to be innocent again. However, as it stands, it does cost money to be in debt. Did you know that you may be able to spend less on your debt?
Through Stockton’s Cash Out Refinance you have the chance to pay off your debt, particularly debt carrying a high interest rate, using the equity you have established in your home.
But how does it work? You refinance your home for the amount you owe on the house plus the amount you need to pay off that debt carrying a high interest rate. Stockton, in turn, gives you the money to pay off that debt.
I know what you are thinking, “but I’m still in debt. Just now it’s to you guys.” But consider this, your new loan amount includes the amount of high-interest debt that you paid off, and your mortgage loan is at a lower interest rate. By doing this you could save thousands of dollars in interest.
Ultimately this lowers your total amount spent on that debt. While that may be enough incentive, we have another! By going this route of a cash out refinance, you will also likely end up lowering your monthly payments, thereby freeing up your money for other purposes. The money can help cover the cost of your children’s activities, pay for a vacation or simply go into your savings!
A cash out refinance with Stockton could be a smart financial decision, it’s worth considering. Talk to your local Stockton Mortgage Banker to find out if it is a smart decision for you.