Cash-Out Refinancing

Taking advantage of great rates can also put cash in your pocket. Cash-out refis are a great way to liquidate the equity of your home.

THE BASICS OF CASH OUT REFINANCING

How Does a Cash-Out Refinance Work?

Some people refinance their mortgage loans with the sole intent of reducing their mortgage rate and saving money on their monthly payment. This is a standard mortgage refinance known as a “rate and term” refinance. Tapping your home's equity and getting cash differs from a traditional or standard refinance.

With a cash-out refinance, you’re usually eligible to borrow up to 70% or 80% of your home’s equity. So let’s say you have $100,000 in equity. In this scenario, you might be eligible to borrow up to 80% of your equity, or up to $80,000. You can get a cash-out refinance with an FHA loan, a VA loan and a conventional mortgage loan. A cash-out refinance is not an option with a USDA refinance. These loans only allow rate-term refinances.

How to Apply for a Cash-Out Refinance

We’re committed to making home ownership affordable for our clients. Whether you’re interested in a rate-term mortgage refinance or a cash-out refinance, our loan experts can assist through every step of the process. Contact us to find a loan officer in your area. Learn how you can access the equity in your home.