Real Estate - Taking a Cash Out Refinance Mortgage

When you own real estate, taking a cash out refinance can provide you with many benefits. Your home's equity can be a valuable source of emergency, here are a few things to consider about cash out refinances. 

Keep Tax Advantage

When you are close to paying off your mortgage you are losing a valuable tax advantage. The interest that you pay on your mortgage can be deducted from your taxable income on your tax return. By refinancing and taking cash out, you gain back your tax advantage. You get the cash and you save money on your taxes thereby giving you money on both ends. 

Long Term

Taking out a personal loan or other type of loan to get the cash you need will most likely give you a short loan term. In most cases, the loan will be for 10 years or less. This makes your payment higher than you can afford in some scenarios. With a refinance, you will get a 30 year term to amortize the loan over. This gives you a manageable payment to work with.

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