At Smart Mortgage Centers, we offer a variety of fixed rate and adjustable rate home loan solutions for homeowners who are looking to tap into the equity they've built in their homes. With cash-out refinances, borrowers are able to receive cash or pay off debt obligations by taking out new mortgages at loan amounts greater than their existing balances. The difference between the new loan amount and what is currently owed (plus any refinance related expenses that are rolled into the loan such as lender's fees, attorney's fees, appraisal costs, etc) is the cash-out amount. Contact us today for a free consultation and see if a cash-out refinance makes sense for your individual needs - 888-416-0920.
Popular Reasons for Doing a Cash-Out Refinance
Consolidating debt carrying higher rates of interest. Tired of making minimum monthly credit card payments without making a dent in your balance? Using a cash-out refi as a debt consolidation loan can help you streamline your liabilities into one loan at a potentially much lower rate.
Home improvement or repairs. Add to the value and your enjoyment of your home! If you indicate that you are using the money for renovation or repairs, you may need to explain to your lender what changes you are planning to make.
Covering costs of secondary or private education. As the cost of secondary and private school education continues to climb, many parents are turning to cash out refinancing to help cover these expenses.
Diversify and pursue other investments. In recent years, mortgage rates have been so low that some financial planners may recommend using some of the equity in your home to diversify your investment portfolio including pursuing the purchase of an investment property.
* How much cash out can a borrower get?
It depends upon the program and multiple other variables such as the type of property and a borrower's credit profile. Conventional loans have different limits than some government back programs which may allow you to borrow up to 85-100% of the value of your home.
* What types of programs do you have?
We have a variety of home financing solutions for cash out refinancing including conforming fixed rate and adjustable rate mortgages, FHA loans, and non-conforming jumbo loans for higher loan amounts.
* Will rates be higher for a cash-out refi?
Most lenders do have cash-out pricing adjustments and rates are sometimes higher than you'd find with a rate and term refinance.
* Do you have cash-out programs for investment properties and second homes too?
We do have cash out refinance solutions for most types of occupancy. Rates and underwriting criteria vary between primary residences, second homes, and rental properties. The same will apply to various types of properties (i.e. condos, multi-family properties, and single family residences).
* Why wouldn't I just get a home equity line of credit (HELOC) or a fixed rate second mortgage instead?
Most home equity lines of credit carry a variable rate of interest which can change on a monthly basis. If you elect to do a cash out refinance with a fixed rate product, you'll avoid not knowing exactly what your mortgage payment is going to be every month. Plus, the rate of interest you'll pay will likely be lower than you would get with a fixed rate second.