Cash Out Refinance
A cash out refinance remains the primary reason people refinance.
Property has appreciated in value, and people are deciding to do a
cash out refinance to
use their "dead equity" to reduce debt, pay for home improvements, or make major purchases.
We offer many cash out refinance products to
unlock the equity in your home or investment property. Email me with any questions about a
cash out
refinance
Cash Out Refinance
In a cash out refinance, determine the balance of your mortgage, and the amount of cash you are taking out plus any closing costs (remember, I do not charge origination fees
in a cash out refinance so these
costs are as low as possible). The total is your loan amount. An
appraiser will determine the value of your property which will be used to
determine your Loan to Value (LTV). I have loan cash out refinance programs which
will allow you to borrow 80, 90, or even 100% of the value of the home in this
"Cash Out Refinance" transaction.
One way to make a cash out refinance work for you is to refinance for more than
the balance remaining on your old mortgage -- in effect, tapping your home
equity, or "cashing out," . Thanks to favorable rates, you may be able
to do a cash out refinance without increasing your monthly payment. For example, at 8.5%, the payment
on a $200,000, 30-year fixed-rate mortgage is $1,538. But at 7.5%, that same
payment lets you borrow nearly $20,000 more.
One way to use the extra cash is to pay off any higher-rate loans you have.
If you are carrying a $15,000 car loan at 10% and are making
minimum payments on a $10,000 credit-card balance at 17%. Your payments could total $680.
Assume you refinanced your mortgage,
taking out an additional $25,000 to pay off your car and credit-card loans. At 7.5%, your additional monthly mortgage payment would be only $175,
you come out $505 ahead ($680-$175=$505).
Of course, all the extra money needn't go for paying off debts. One
client refinanced an ARM for a fixed-rate loan, they increased their mortgage by $34,000, from $106,000 to $140,000.
Using $2,000 of the proceeds to pay their refinancing costs and another
$18,000 to pay
off a 10% home-equity loan, which had cost them $250 a month. They
spent the remaining $14,000 to build a garage and did all this for just $19 a month. We offer the ability to
work with
several unique programs accommodating borrowers with non traditional income
or asset situations. Please visit my No
Docs page.
Learn more about Cash Out
refinance closing costs.
If you already have an excellent rate on your first mortgage, I have information available on
home equity loans and a
home equity line of credit
I have included a page on mortgage
documentation requirements
Find out more about Streamline
Refinancing
Learn more about "No Cost Refinance"
options.
Read my new lock or float
daily blog to see where rates are going
As a Certified Mortgage
Planning Specialist, I offer an analysis of
your situation today can make suggestions on how small changes in how
your debt is structured today can have a life changing effect in the years
to come. Read more
about this free, no obligation service.
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Prequalify for your Cash Out Refinance.
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