Listen on the Podcast
On the show today I am breaking down the Cash-Out Refinance strategy.
Many people are noticing a high uptick in the value of their homes, and with this uptick in value comes an increase in home equity.
So what can you do with the equity in your home, how does it work, and what are the risks?
In this episode I am going to break down:
- How to calculate your home’s equity
- How much of the equity you can actually tap into
- The process of of a cash-out refinance
- Reasons for going with a cash-out refi
- The risks the banks forge to tell you about
How to Determine Home Equity
The equity you have in your home is equal to the appraised value of your home minus any first or second mortgage, or any other liens you have on your home.
Example of Home Equity Calculation
Current Appraised Value
Current Home Mortgage
Home Equity Amount
Example of Cash-Out Refinance
Loan to Value
New Mortgage Amount
Cash Out Refinance
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Today’s show was brought to you by OneAZ Credit Union — my very own credit union I have been proud a member of since 2011.
If you live in Arizona and are looking for a large credit union with a local, customer-focused feel for your personal or business banking needs, look no further than OneAZ Credit Union.