Land Contract Cash Out, Better Rate, Better Payment? Which refinancing option is best for you? One of our top most requested programs is a refinance option with cash out available for Land contract clients. If you are in a land contract, you should really review your options. Lower rates, better terms, and cashing out a land contract are three great reasons to consult with a loan expert who understands these options. There are solid programs for buyers that are faced with low credit, bankruptcies, foreclosures, low income, and high debt issues. There aren't quite as many loan programs as there are borrowers, but it seems like it sometimes! Land contract lenders will work with you to qualify you for the best loan program to fit your needs. But there are some general considerations you can have in mind in advance. Are you refinancing primarily to cash out some home equity?   If you've had your current mortgage for a number of years and/or have a mortgage whose interest rate is higher, you may be able to do this without increasing your monthly payment.  Medicaid You want to cash out some equity to consolidate other debt? If you have the equity in your home to make it work, paying off other debt with higher interest rates than the interest rate on your mortgage -- for example, credit cards, home equity loans, car loans, some student loans -- means you can save possibly hundreds of dollars a month.  Many smart financial advisors discourage leveraging secured debt like home loans to payoff unsecured credit card type debt. Ask your advisor her thoughts. Do you want to build up home equity more quickly, and pay off your mortgage sooner? Consider refinancing with a shorter-term loan, such as a 15-year mortgage. Your payments will be higher than with a longer-term loan, but in exchange, you will pay substantially less interest and will build up equity more quickly. If you have had your current 30-year mortgage for a number of years and the loan balance is relatively low, you may be able to do this without increasing your monthly payment -- you may even be able to save! For example, let's say years ago you took out a $150,000 30-year mortgage at eight percent. Your payment is about $1,100, exclusive of taxes, insurance and so on. If your balance today is down to $130,000, you might take out a 15-year mortgage at six percent and have an almost identical monthly payment. This is a great option for people whose main goal is not to save money on their monthly payment but rather want to build up equity and pay off their home more quickly. Happy Shopping!