CASH-OUT REFINANCE
About Cash-Out Refinances
A cash-out refinance can be a valuable financial resource to help you meet your financial goals! Use the equity in your home to your advantage! With a cash-out refinance, you can use the cash for anything you want or need? Such as . . .
- Home repairs or home improvement projects
- Pay for college tuition
- Pay-off high interest credit cards or auto loans
- Take that dream vacation or buy a vacation home
- If you are over 62, a Reverse Mortgage may be an option that meets your needs.
- Other financial investments, and more . . . .
Whatever the case may be, a cash-out refinance may be a great option. There are several factors that will determine if you are eligible for a cash-out refinance. And there are several loan options to choose from, including Conventional, FHA, VA and Jumbo.
It is important to be aware that in order to be able to take cash out of your home, you must have sufficient equity in your home to meet eligible loan program guidelines. Equity is the difference between the amount you owe on your home (i.e. principle loan balance of all loans on the home) and the value of your home. Because you are borrowing more than you currently owe, it is likely that your monthly payment will be higher after a cash-out refinance. However, there are cases where it may be lower (e.g. new lower interest rate, new longer loan term, or elimination of mortgage insurance).
Most Conventional and Jumbo loans are limited to between 70% and 80% maximum loan-to-value (LTV) for a cash-out refinance. FHA allows up to 85% LTV and VA loans allow up to 100% maximum LTV.
Is A Cash-Out Refinance Right for Me?
This is not always a clear black and white answer due to the subjective nature surrounding the need or desire to take cash out of your home. However, like with any refinance, you should understand that there are costs associated with refinancing your mortgage. And if you are engaging with a lender that says there are “no costs,” then they are hiding the costs from you so that you aren’t able to make a fully informed decision. You should know what the costs are to refinance your loan (e.g. appraisal, origination fess, title fees, etc.), so that you can compare the proposed savings/benefits of refinancing against the costs to determine if refinancing makes sense for you. In addition, as discussed above, you should be aware that a cash-out refinance may make your monthly mortgage payment higher than it currently is, which should factor that in to your decision making process.
Contact a Loan Geeks Home Loan Expert to fully explore the benefits of a cash-out refinance and to better understand your options!
Why You Should Refinance with The Loan Geeks
- You don’t have to sacrifice Great Service to get Great Rates!
- We are a Full-Service Mortgage Lender!
- We are one of the largest mortgage lenders in the US!
- Our Loan Geeks Home Loan Experts are no more than a mouse click or phone call away from providing you with the answers you need and providing the assistance necessary for a smooth stress-free refinance.
- We offer wide variety of loan programs to meet your refinance needs.
What is my next step?
Apply Online
With our State-of-the-Art Two-X Online Application technology, getting a home loan has never been easier or faster. you will be walked through the application process step-by-step. And the help of a Loan Geeks Home Loan Expert is never more than a mouse click or phone call away.
Talk to a Loan Geek Home Loan Expert!
If you are not comfortable starting the application process online, no need to worry. A Loan Geeks Home Loan Expert is available to answer all of your questions and get you started! Answer a few quick questions on the contact request and we’ll have a Loan Geeks Home Loan Expert call you.