Cash Out Refinance
Cashing out refers to the refinancing of their existing loan where the borrowers will take out the equity of their home. If a home is appraised at $200,000 and the borrower's outstanding mortgage loan is $120,000, it is possible to enter into an 80% cash-out refinance transaction for a loan of $160,000 (80% of $160,000). The new mortgage of $160,000 will pay off the $120,000 loan and leave $40,000 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 pay off debts or upcoming expenses. 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.
How can we help?
If you are looking for this type of refinancing, Schaffer Mortgage can find a program suited to your financial needs. We offer cash-out programs for Owner-occupied homes and Non-owner occupied homes, with low, affordable rates.