Are you considering a withdrawal? Now is the right time as stocks skyrocket!

The record home price appreciation over the past few years has propelled home equity to new highs!

According to a report released this week by data provider Black Knight, the third quarter of 2021 saw an almost $ 250 billion increase in exploitable equity, a record. With a record working home equity, now is a great time to consider a cash refinance to fund those projects or repairs around the home, start an addition, consolidate high interest debt, or whatever else you are looking for. need extra money.

The Black Knight report also highlights the fact that the global total of $ 9.4 trillion is up 32% from the same period last year and nearly 90% higher than the peak of before the great recession of 2006.

It comes down to roughly $ 178,000 available to the average homeowner in exploitable equity!

Did you know you can use cash out refinancing as a way to put down an investment property down payment? With Griffin Funding Bayside’s DSCR No Income Home Loan, you don’t have to submit your personal income or tax returns. Simply qualify the rental income from the investment property.

Overall, mortgage holders withdrew more than $ 70 billion in equity in the third quarter, equivalent to just 0.8% of available equity at the start of the quarter, according to the report. Year over year, more than a million withdrawals have been issued. It should also be noted that the share of cash flow refinancing is set to increase further if mortgage rates continue to rise in the coming quarters.

Some cities with the highest concentration of exploitable equity in the country are Los Angeles, San Francisco, San Jose, and Seattle. Additionally, the Black Knight report said the monthly principle and interest payment for buying a mid-priced home with 20% off has increased by almost 25% since the start of 2021.

The shortage of home inventories continues to put pressure on home prices, and they are likely to continue to rise for the foreseeable future. Even if home prices hold up, a 30-year rate hike to 3.5% will result in the tightest affordability since 2009.

Here are some ways to use cash-out refinancing:

  1. Build up emergency savings
    Having emergency funds can turn a potential disaster into an inconvenience. Examples of emergencies include unexpected job loss, car repairs, medical emergencies, or home repairs. Many experts recommend having at least three to six months of living expenses in an emergency fund. Having this amount takes the stress out of looking for funds or borrowing money.
  2. Pay off high interest debt
    With a withdrawal refinance, you can get funds to pay off your high interest debts. Target debt with the highest interest rate. The more equity you have, the more cashout you can use. The sooner you pay off your debt, the less interest you pay in the long run. Find out how inexpensive it can be to withdraw money below.
  3. Increase pension contributions
    The more retirement funds are on the market, the more they will compound and grow. So the sooner and the more you contribute, the better. By using the equity in your home to withdraw money at a low interest rate, you can then invest that money in faster, more profitable investments.
  4. Invest in education
    Getting additional training, education, and professional licenses could make you a solid candidate for that next big promotion or raise. You can also use the money to save or pay for your children’s education. Education is not cheap, but it is very valuable.
  5. Home Improvements
    Strategic renovations and improvements can increase a home’s value. Maybe you’ve been waiting to start that kitchen remodel or add an addition – now is a great time to use the equity you have while rates are still low. Start those much-needed renovations or repairs today.
  6. Buy an investment property
    You could use the money from refinancing your primary residence to buy more real estate, such as rental or investment property. As an asset class, real estate can build wealth quickly because you can capitalize on your purchase. It’s a great way to expand your real estate portfolio. In many cases, homeowners take out a cash loan on their home and purchase a rental property with cash. When they want to invest again, they refinance their existing investment property in cash in order to buy another. The result is a strong collection of rentals that produce ongoing income and tend to retain their historic value.

If you haven’t yet considered refinancing with withdrawal, now is the perfect time with rates historically still very low.

Griffin Funding Bayside is licensed in: Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Maryland, Michigan, Montana, Tennessee, Texas, Virginia and Washington!

Specializing in VA and non-QM loans, we have access to wholesale rates and offer to beat or match any market rate! You want to know more ? Contact us online or call us at 619-393-8458 to receive your consultation without obligation.

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