Cash Out Refinance

Refinance Your Mortgage with Cash-out

There are situations in life when you need extra money to pay for significant additional expenses that come up. You might need to pay for your childs college tuition, considerable home improvements or investing money into a new business. Or there is a credit card debt that you need to cover. In this case, a cash-out refinance might be the best option for you.

Cash-out Refinance Options

• Conventional cash out is available for homeowners with more than 20% equity on their homes
• FHA home refinance with cash out that is available to those who have more than 15% equity on their house
• VA cash-out refinance for veterans or active service members. You can check requirements here

What Is a Cash-out Refinance?

A cash-out refinance is replacing an existing mortgage with a new loan that has more favorable terms and a higher balance. The difference between these two loans is given back to you as cash. This is possible because you as a borrower only owe the original mortgage amount to the lender.

The difference from a traditional refinance, when you receive better terms and lower interest rate, is actually getting money on hand. It is also not a HELOC (home equity line of credit) when you borrow cash using the home-equity as collateral.