Pull Out Cash from Your Property with Aspen Shadow
Have you acquired multiple rental properties over time or do you have significant equity in a home that you’d like to access? If you’re scaling your business, access to capital is key.
Leveraging a Cash-Out Refinance allows you to pull cash out of an existing property. We currently offer 75% of the appraised value on Cash-Out Refinances.
Cash-Out Refinance: Unlocking Your Property’s Equity
When a property gains value through appreciation—organic or forced—it build equity, or stored value, that remains “trapped” until a liquidity event. While selling is one way to access this “trapped” value, a cash-out refinance allows the owner to access their equity without having to sell the property.
Types of Appreciation
- Forced Appreciation: When improvements are made to the property, like renovations, that directly increase the value of the property. A good example of that is remodeling the kitchen or adding an additional bathroom.
- Organic Appreciation: This happens naturally as the overall market value of a property or area rises due to demand, location, and economic growth.
Accessing Equity Through Cash-Out Refinance
Instead of selling the property to access that “trapped” equity, a cash-out refinance allows the owner to access their equity while retaining ownership. Here’s how it works:
- With a cash-out refinance, you can refinance up to 75% of the property’s current value.
- The lender provides cash for the difference between the new loan amount and the existing mortgage balance.
Let’s run through an example so all of that makes more sense:
If your property is now valued at $300,000, with a cash-out refinance, you can access up to 75% of this value. Here is how the calculation breaks down:
- Determine the Maximum Loan Amount: 75% of the property’s value:
300,000 x 0.75 = 225,000
The maximum loan amount allowed would be $225,000.
- Subtract the Existing Mortgage Balance: if your current mortgage balance is $200,000, subtract this from the new loan amount:
225,000 – 200,000 = 25,000
- Cash-Out Amount: The lender will pay out $25,000 in cash.
This amount can be used for further investments, renovations, or other financial goals—all without selling the property.
A cash-out refinance is a powerful tool for accessing property equity and achieving liquidity without selling. Whether your property has increased in value through forced or organic appreciation, cash-out refinancing lets you leverage that equity to achieve your financial goals while continuing to benefit from property ownership.