Cash Out Refinance
Cashing out refers to the refinancing of a loan where the borrowers will borrow money on their own home. If a home is appraised at $1,000,000 and the borrower’s outstanding mortgage loan is $600,000, it is possible to enter into an 80% cash-out refinance transaction for a loan of $800,000 (80% of $1,000,000). The new mortgage of $800,000 will pay off the $600,000 loan and leave $200,000 cash-out to the borrowers.
What are the benefits?
By cashing out on your home, you can obtain cash on the value of your own home to remodel, pay off debts or upcoming expenses. The refinance transaction may also provide you with a lower interest rate that will save on your monthly mortgage payments going forward. And if the funds are used to improve the home, it’s may be tax deductible. Speak with your tax professional.
How can we help?
If you are looking for this type of refinancing, Home Again can find a program suited to your financial needs. We offer cash-out programs for Owner-occupied and Non-owner occupied homes with low, affordable rates.