If it is finally time to add space to your home, refinish your basement, or finally start the kitchen remodel you’ve been dreaming about for years, congratulations! While home improvement projects are exciting to plan and enjoyable once complete, deciding how to finance your project can be confusing. The Lake Region Bank home loan team can help you understand all of your options. One solution may be a cash-out refinance of your current mortgage.

What Is a Cash-Out Refinance?

A cash-out refinance pays off your first mortgage and gives you some cash for making home improvements. With your new mortgage through the cash-out refinance, you will have a new loan term, new interest rate, and new monthly payment. You will also receive a lump sum of cash to put toward your home improvement project.

The amount of cash you can obtain through a cash-out refinance depends on how much equity you have in your home. The greater your equity, generally, the greater amount of cash you may be eligible to borrow.

What Home Improvements Can I Make with a Cash-Out Refinance?

You can use the lump sum from your cash-out refinance to fund any type of project you wish. Minnesota homeowners have used cash-out refinances to remodel basements or kitchens, build new garages, replace roofs or windows, build additions, update landscaping, and complete other big-ticket home improvement projects.

What Types of Home Loans Are Available through a Cash-Out Refinance?

Fixed-rate and adjustable-rate mortgage loans are available through a cash-out refinance. The lending process is similar to what you can expect from the conventional mortgage loan lending process. Rates for cash-out refinances vary day to day. Our home lending team can share current interest rates with you.

Am I Eligible for a Cash-Out Refinance?

Like other mortgage loans, cash-out refinances have minimum credit score, income, and other requirements. Our mortgage lenders can help you decide if a cash-out refinance is the right financing option for your project.

Apply for a Cash-Out Refinance

Applying for a cash-out refinance is easy. You can get in touch with our lending team at (320) 235-5900 or fill out our interest form.