Have you ever wondered what a refinance or equity take out is? Simply said, a refinance or an equity take out allows you to use the equity of your home. As long as you qualify to take out the new funds, you can use it towards anything you want. Some clients increase their savings, take out funds for renovation, consolidate debt, or put a home line of credit in place so they have access to funds when they need them.
If you are carrying debt a refinance or an equity take might be a good idea for you to explore? It doesn’t hurt to look at some numbers, especially if you are close to your renewal period. Clearly, this is not something you want to make a habit od (using your home as an ATM), but depending on your situation, it may make sense.
I have put together a simple pie chart below showing the before and after of a client’s total finances. This client put a lot of money into his business and unfortunately the return wasn’t there. He had moved into his place 4 ½ years ago and built up quite a bit of equity. We were able to tap into some of that equity, clear off debt and even start a saving program and reducing his total monthly expenses.
It all started with one conversation. If your mortgage is up for renewal and you want to take advantage of consolidating debt or freeing up some equity reach out or comment below.