CASH OUT REFINANCE
Cashing out refers to the refinancing of a loan where the borrowers will take out additional money against their home.
For example, if a home is appraised at $100,000 and the borrower's outstanding mortgage loan is $60,000, it is possible to enter into an 80% cash-out refinance transaction for a loan of $80,000 (80% of $100,000). The new mortgage of $80,000 will pay off the $60,000 loan and leave $20,000 cash-out to the borrowers.
What are the benefits of a Cash Out refinance?
By cashing out on your home, you can obtain cash on the value of your own home to pay off existing debts (like credits cards) or pay for upcoming expenses (college), or even get the money to update or repair your home (new siding, new roof).
The refinance transaction may also provide you with a better mortgage loan interest rate that will save on your monthly mortgage payments during the loan. And it's tax-deductible.
CASH OUT IS NOT A HELOC
While you are taking cash out, a cash out refinance is different from a Home Equity Loan (HELOC). A home equity loan is a new smaller loan. You leave your existing mortgage alone. The cash out refinance you pay off your existing mortgage AND take additional cash in one new mortgage.
LET US HELP YOU?
If you are looking for this type of refinancing, Cambria Mortgage can find a program suited to your financial needs. We offer cash-out programs for both owner-occupied homes, and non-owner occupied homes.
Limitation apply on how much cash you can take out, so be sure to call or click to get contact us about your personal cash out refinance options.