Five Ways to Use a Cash Out Refinance


Are you looking for a way to finance home renovations, pay down high-interest credit cards or finally purchase that something special you’ve had your eye on? A cash-out refinance or home equity loan may be exactly what you’re looking for. Home values are increasing across the country, making your home potentially worth more than the price of your home at purchase. If it’s time you took advantage of the equity in your home, here are five ways to use a cash-out refinance or home equity loan.

Home Renovation

Is it time to upgrade your kitchen or household appliances? Or maybe it’s time to finally create the backyard oasis you’ve always dreamed of. Whatever the case may be, one of the most popular ways to use a cash-out refinance is for home renovation. With a cash-out refinance or home equity loan, you can make home improvements without having to tap into your hard-earned savings. Plus, your renovations may actually add significant value to your home, making it a win-win.

Pay Down Higher Interest Debt

For most of us, credit cards are a necessary evil. We use them to make large purchases, pay for day-to-day expenses between paychecks or when we’re in a bind. Credit cards typically come with interest rates around 15 percent or higher, according to BankRate.com, making them difficult to pay off if you’ve racked up a lot of debt. With a cash-out refinance or home equity loan, you can use the money to pay off your high-interest credit cards at a much lower interest rate, so you can say goodbye to credit card debt.

College Tuition

It’s no secret that college can be expensive. You have tuition costs, books, supplies like a computer or tablet, housing, daily living – the list goes on and on. While there are student loans available, young people are put in a tough situation when they are beginning their professional life thousands of dollars or more in debt. Use a cash-out refinance or home equity loan to help cover the costs of college tuition for yourself or a loved one.

Medical Bills or Other Unexpected Finances

Sometimes the unexpected happens and we end up in a bind financially. If you or a loved one needs help for medical bills or other unexpected finances, a great way to cover the costs can be a cash-out refinance. A cash-out refinance or home equity loan can help you pay for these costs without having to put these on high-interest credit cards or tap into your life savings.

Treat Yourself, You Deserve It

You work hard, so you deserve to have a little fun now and then! Have you always dreamed of a vacation where you sipped espresso under the Eiffel tower, put the pedal to the metal on the Autobahn or dined off the coast of Italy? One of the best things about a cash-out refinance is its flexibility. It’s your money to use as you like. So whether you want to plan a dream vacation, buy that sailboat you’ve always wanted or, whatever you have your eye on, you can with a cash-out refinance or home equity loan.

Go Colonial When Refinancing Your Mortgage

Colonial knows all the ins and outs when it comes to home loans and refinancing a current mortgage. Give me a call today to get the conversation started to find out if you are eligible for a cash-out refinance or home equity loan. I will work with you to determine your eligibility and help you with each step of the process. Visit GoColonial.com today to learn more about all the great products Colonial has to offer.

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2 Responses to “Five Ways to Use a Cash Out Refinance”

  1. Kimberly Nam says:

    I am looking for refinancing home and cash out. Please help me

    • Graham Ashley says:

      Hi Kimberly,

      Thanks for reaching out to us about a potential cash-out refinance. We are happy to get you in touch with your Relationship Manager, Isela Moran, who will be in contact with you. Let us know if we can further assist you!

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