Refinancing

I need money to pay my kid's college tuition. Can "cash-out refinancing" help?

If you've been paying down your mortgage for a long period, or if property values have risen in your neighborhood, you’ve probably built up equity in your home. A cash-out refinancing can get you access to this money. For example, if your house is worth $200,000 and you still owe $100,000 on your mortgage, you could refinance your mortgage for, say, $150,000 and borrow $50,000 in cash from the equity in your home.

Refinancing Tip

What’s break-even? Divide your closing costs by the amount you'll save each month. The result is the number of months it will take for a refinancing to pay off. If you plan on moving before break-even, don't do the deal.

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