Getting cash out of your house is a great option when you need access to liquid assets. The equity you have built up in your house by paying your mortgage every month can truly help you out when you need a large amount of cash in your hands for any reason. Here are some great ways you can use your house to get cash.
Getting Cash out of Your House
Cash-Out Refinance
A cash-out refinance deal allows you to refinance your house for more than you own on it. Then, you can take the overage in a lump sum of cash. You then pay back that cash as part of your new mortgage payment. Most mortgage lenders only allow you this benefit if you have at least 20 percent equity in your house. This option is great if you need money for home improvements, as then it allows you to put money back into the house to help raise its resale value.
Home Equity Loan
A home equity loan is a fixed-rate loan you take that is like a second mortgage. You can borrow this money against the equity you have in the house and then pay it back in equal monthly installments over the life of the mortgage.
Home Equity Line of Credit (HELC)
A home equity line of credit is similar to a home equity loan. It differs from a home equity loan, as a HELC has a variable rate of interest, so the payment amount changes over time. A HELC is broken up into periods, one in which you can draw money from the loan and another when you must pay it back. During the draw period, any payments that are made will only go toward the interest that is due on the loan. Once the repayment period begins, payments will go toward both principal and interest.
Reverse Mortgage
A reverse mortgage is an FHA-insured loan against the equity in a house. It is only given to people over the age of 62. A reverse mortgage is generally used to help retired people who are living on fixed incomes so they can pay for long-term health care, in-home health services, or other major expenses.
Sell Your House For Cash
Selling your house for cash is a great option, especially if you need cash in your pocket quickly. Cash sales on homes process more quickly than traditional sales. As the seller, all you need to do is move out. There is no need to make updates or improvements. The house will not even need to pass an inspection! Once the transaction is done, money will be deposited into your account for you to do whatever you wish.
If you need to get cash out of your house, Ben Buys Indy Houses can take it off your hands. You will have cash in your pocket in no more than 30 days! Contact us today to see how we can help you.
