REFINANCING AND CASH OUT

Recently, low interest rates have prompted many homeowners to consider refinancing their exsiting mortgages.  If the interest rate you are paying on your existing mortgage is higher than current interest rates, you may reduce your monthly payments by using the existing equity in your home to refinance.  You may benefit from refinancing if:

• You plan on living in your home for a number of years
• You've built up considerable equity in your home

Lower your monthly payments

If interest rates are significantly or even slightly lower than when you bought your house, or if you want to convert from an adjustable to a fixed rate loan to gain greater stability, refinancing through a home equity loan may lower your monthly payment.

Reduce your interest rate

Credit cards and auto loans often carry an interest rate far higher than that of a home equity loan or a Prime Equity Line of Credit.  Consolidating that debt may decrease your monthly interest charges.¹

Convert equity/cash out

If you've built up considerable equity in your home, you many be eligible to refinance to a larger loan amount.  This would provide you additional cash that could be used for debt consolidation, home improvement, or for personal use. The interest paid on your "cash out" refinance, unlike personal loans, could be tax deductible (consult you tax advisor concerning interest deductibility).

For other financial planning advice, consult with your Wachovia loan counselor.

Email This Page     Printer Friendly Version

All loans and lines of credit are subject to credit approval, verification and collateral evaluation. Loans originated by Wachovia Mortgage, FSB, Wachovia Bank, N.A. or Wachovia Bank of Delaware, N.A. Products not available in all states and are subject to change without notice. You cannot combine these offers with other Wachovia offers.