Cash-out Refinance

With a cash-out refinance, you can access the equity you’ve built in your home. You can use this cash for such things as home improvements, college expenses or a new car. Many of our customers also choose to use the cash-out refinance to consolidate credit card debt.

Nationwide Advantage Mortgage^® Cash-out Refinance loans vary based on product. For more details, please call a Mortgage Consultant at 1-800-811-5385.

How does a cash-out refinance work?

Say your existing house is worth $225,000, and you currently owe $150,000. You need $25,000 to pay off your credit card debt. You refinance your home loan with a mortgage of $180,000. Through the refinance, you pay off your current loan of $150,000. You’re left with $25,000 to pay off your credit card debt and $5,000 to use toward closing costs and other small purchases.

By refinancing and paying off your credit cards, you now pay $1,108 each month instead of $1,730. That’s $622 cash savings each month.*

*The above example assumes an original 30-year fixed-rate mortgage of $155,000 with an interest rate of 7.75 percent and a monthly payment of $1,110. As a result of regular monthly payments, the unpaid balance of the loan has been reduced to $150,000. The loan is refinanced with a Nationwide Advantage Mortgage 30-year fixed-rate mortgage of $180,000 with a monthly payment of $1,108 and a loan to value ratio of 80 percent. The interest rate on the Nationwide Advantage Mortgage loan is 6.25 percent. The annual percentage rate for the new loan is 6.322 percent. The example assumes that the credit card debt has an annual percentage rate of 18 percent and requires a monthly payment of 2.5 percent of the unpaid balance. Your actual experience will vary.