Imagine the possibilities of having cash to do about anything you want. A cash out refinance loan is a new loan for a larger amount than the existing mortgage loan. If you have equity in your home doing a cash out loan will fill your pockets the equity you have built up.
Here are a few options to use that equity:
Yes, the fees are the same as a doing any refinancing options. You will need to pay closing cost and interest on the cash you receive from the difference between the two mortgage loans. Make sure you are not replacing a good interest rate with a higher interest rate. If the interest rate is higher then this is not a good option.
If you refinance with this option, do not mistake the “cash” as “cash on hand.” Most lenders will calculate a percentage of the value keeping some of the refinancing in the home and you can take the rest minus your closing cost. Speak with our loan advisors to figure this calculation on your cash out equity.
You may need to have a higher credit score and you maybe be required to have a minimum of 85% in equity in your home. Plus, like standard loans you will need to complete a mortgage application and provide recent financial documents.
Cash Out Refinancing can be a smart choice for homeowners but be smart and speak to one of our financial mortgage advisors to evaluate your unique situation. We can help determine how much cash you can receive contact us today.