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Cash In, Not Cash Out


Want to lower your monthly payments and dramatically reduce the amount of interest you pay over the life of a re-financed loan? One way is by putting cash into the loan.

“Cash out” refinancing allows homeowners to tap into the equity in their homes and take that cash as a lump sum, but the more you borrow the more you must pay back, and the higher your payments.

To lower your payments, think about “cash in” instead. By making a down payment on a refinanced loan you not only lower your payments, you may be able to finance the loan for a shorter term. The shorter the term, the less total interest you pay – and the less the loan costs you in total. In addition, the lender may offer a lower interest rate, since your down payment helps offset some of the risk of default. You also may be able to avoid paying private mortgage insurance, (PMI), which can add hundreds of dollars a month to your payment.

Personal – Saving, Planning & Budgeting

Ready to explore how Sunflower Bank can assist you? Speak to a personal banker at a branch near you, contact a specialist on our Wealth Management team, or find the right financial partner on our Commercial Banking team for your business needs. 

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This article contains general information only. Sunflower Bank is not, by means of this article, rendering accounting, financial, investment, legal, tax, or other professional advice or services. This article is not a substitute for such professional advice or services, before making any decisions related to these matters, you should consult a qualified professional advisor.